Weekly Market Dynamics (18-24 November 2019)

• Raw materials: cotton, viscose staple fiber prices fell, polyester staple prices rebounded.
• Product end: cotton yarn prices remain stable, gray cloth price stability is weak.

First, the spot price of cotton fell, and the price of internal and external upside down was narrowed.

There are contradictions and differences in the Sino US trade negotiations. Whether the first stage agreement can be reached is still unknown. In December 15th, the news that the US's new round of increasing tariffs on Chinese products is hard to cancel is once again stimulating the market, and domestic and foreign cotton prices have dropped. Although the domestic cotton rotation policy has been announced, it remains to be seen whether the quality of the incoming cotton can meet the requirements of the announcement. At present, Chen cotton stocks are still high in the market, and the purchasing intention of textile enterprises is not high.

Specific data, when the average price of domestic cotton spot 3128 yuan 12840 yuan / ton, compared with the previous week, 76 yuan / ton, Zhengzhou cotton futures contract settlement price 12730 yuan / ton, compared with the previous week, 295 yuan / ton; CotlookA index average price 74.31 cents / pound, compared with the previous week 0.92 cents / pound, New York cotton futures contract settlement price 64.84 cents / pound, compared with the previous week dropped 0.99 cents / pound.

When the price of cotton upside down was reduced at home and abroad, the spot price of domestic cotton was lower than the spot price of foreign cotton by 119 yuan / ton.

　　 Cotton price trend at home and abroad since 2018

Two, viscose staple fiber prices continued to decline, polyester staple prices began to rebound.

At the beginning of the week, the price of viscose staple fiber remained unchanged before the weekend, and the price was slightly lower. With the centralized purchase of textile enterprises, the quotation of viscose factory has been raised, but the overall average price is lower than that of the previous week. Polyester staple fiber prices remained stable in the first half of the week. With the increase of polyester raw materials, some factory quotations rose, and the overall average price was the same as that of the previous week. Specific data, viscose staple average price of 10192 yuan / ton, compared with the previous week dropped 246 yuan / ton, polyester staple average price of 6695 yuan / ton, compared with the previous week rose 1 yuan / ton.

　　 Price trend of chemical fiber staple since 2018

Three, cotton yarn prices remain stable, the price of grey cloth is stable and weak.

The cotton yarn market remained stable during the week, and the price of pure cotton yarn remained stable. According to the varieties, conventional cotton yarns and high count yarns are more smooth, and the carding yarn is slightly better than the combed yarn, and the market of the air spinning market is lighter. Specific data, domestic 32 cotton combed yarn spot average price of 20355 yuan / ton, and the price of the previous week was unchanged.

Imported yarn, India yarn price is strong, and the same number of domestic cotton yarn price difference narrowed. At the beginning of the week, the price trend of Vietnam yarn remained unchanged during the week. According to specific data, the average price of 32 Cotton Combed Yarns in India is 20290 yuan / ton, up 50 yuan / ton compared with the previous week, and the average price difference of 32 cotton combed yarn is 65 yuan / ton, and the average price of 32 cotton pure cotton carpets in Vietnam is 19900 yuan / ton, up 70 yuan / ton compared with the previous week, which is 455 yuan / ton with the average price of domestic 32 cotton pure cotton combed yarn.

When the trading atmosphere of the grey fabric market remained weak in the week, the inventory of the enterprises remained high, and the selling phenomenon still existed. In the week, the average price of pure cotton grey fabric (32*32 130*702/1 47 "twill") was 4.86 yuan / m, which was 0.01 yuan / meter lower than the previous week.

　　 Price chart of cotton yarn at home and abroad since 2018

　　 Price chart of gauze products since 2018

Four, outlook for the future

At present, China and the United States continue to push ahead with the first stage agreement, and the global supply of cotton is abundant. It is expected that cotton prices will oscillate in the short run. Products, due to the gradual slowdown in downstream consumption, market caution, the lack of support for gauze prices.