Weekly Market Dynamics (April 13, 2020 -4 19)

Raw material end: cotton price range fluctuates, polyester and viscose "rise or fall", textile enterprises stage replenishment;

Product side: market downturn, low price increase.

　　 Cotton

Although the number of confirmed cases of new crown pneumonia in foreign countries is increasing rapidly, the overseas countries will gradually resume their work in order to promote the normal operation of their domestic society and economy as soon as possible. When the price of cotton futures was relatively stable at home and abroad, some cotton spinning enterprises began to focus on replenishment. According to the Research Association of China Cotton Association, the proportion of cotton stocks in more than 1 months was 53%, which was 7.6 percentage points higher than the previous week.

Chemical fiber staple

The price of PET staple was raised substantially in early week, and was affected by the fall in crude oil prices. The weekend fell slightly, but the overall price was higher than the previous week. Viscose staple fiber prices remained basically stable, a small number of viscose factory quotations slightly down, cotton textile enterprises non cotton fiber inventory in more than half a month or more. According to the Research Association of China Cotton Association, cotton textile enterprises accounted for about 35% of non cotton fiber stocks in 2-3 weeks, accounting for 34% of stocks in more than 1 months, up 4.5 and 4.4 percentage points respectively from the previous week.

　　 Cotton yarn

When the downstream market continued to be light in the week, some enterprises said that the phenomenon of low price selling began to increase, and the market prices were lower. According to the varieties, the air spinning cotton yarn is light, and the ring spinning yarn is relatively acceptable. Judging from the coordinated research situation of China Cotton bank, the inventory level of cotton spinning enterprises has not improved significantly. Half of the enterprises' inventory level is 1 months, and 24% of the cotton spinning enterprises are in stock for 2 months or more, which has far exceeded the normal stock level. Imported yarn, India and Vietnam 32 cotton combed yarn prices fell around 200 yuan / ton, far higher than the domestic cotton yarn decline, domestic and foreign cotton yarn continuously maintained a month's upside down price has changed.

Grey

At present, the overseas epidemic is still grim, and the "inflection point" has not yet appeared, and export orders are difficult to recover in the short term. Weaving mill said that the overall downstream orders are inadequate, and some areas have reduced prices. Under the pressure of funds, the production enthusiasm of the weaving mill is not high, and more conventional varieties are maintained. Some enterprises say they will extend the May Day holiday.

Outlook for the future

In April 17th, the National Bureau of Statistics announced that the GDP in China declined by 6.8% in the first quarter compared with the previous year. However, the main economic indicators in March narrowed significantly, and the pace of economic recovery was accelerating. On the same day, the Political Bureau of the Central Committee of the CPC held a meeting to put forward the "six guarantees" for the first time, and clearly put forward the strategy of strengthening the implementation of expanding domestic demand. For the first time, it proposed to support the export of enterprises to domestic sales. At present, many provinces and cities have started issuing vouchers to activate the consumer market and release the potential for consumption. At present, the consumption voucher policy plays a positive role in stimulating residents' consumption and promoting market activity. It is believed that under the stimulation of various policies, the downstream demand will gradually recover.