Weekly Market Dynamics (5-11 August 2019)

When the price of raw materials continued to decline and the decline increased, the prices of gauze products were also gradually lowered, and prices continued to decline.

First, domestic and foreign cotton prices continue to decline, increasing

Recently, the United States seriously violated the consensus between the two heads of state of the Osaka meeting, claiming that it would levy a 10% tariff on 300 billion US dollars in China's exports to the US. Immediately after that, the Chinese side responded that the purchase of US agricultural products after the new deal in August 3rd will not be excluded from the import duties. Chinese related enterprises have suspended the purchase of US agricultural products. Affected by this, domestic and foreign cotton futures and spot prices fell again, increasing.

In the domestic market, the average price of domestic 3128 grade cotton spot was 13126 yuan / ton, compared with the previous week, 584 yuan per ton, and the settlement price of Zhengzhou cotton futures contract was 12309 yuan / ton, which was 735 yuan / ton lower than that of the previous week. In the international arena, the average price of the CotlookA index was 70.5 cents / pound during the week, which was 4.4 cents lower than the previous week, and the settlement price of New York cotton futures contract was 58.83 cents / pound, a decrease of 2.98 cents / pound compared with the previous week.

When the price of cotton increased at home and abroad, the average price difference was 1149 yuan / ton, which increased by 158 yuan / ton compared with the previous week.

　　 Cotton price trend at home and abroad since 2018

Two, the price of chemical fiber staple decreased significantly.

At the beginning of the week, viscose staple fiber prices were significantly lower, and the turnover was light. In the latter half of the week, the market went further down, and some large viscose factories lowered their quotations, but there was no enquiry in the market. Polyester staple fiber, the first half of polyester raw material once again weakened, direct spinning polyester prices fell again, polyester raw materials in the second half of the week to stabilize, direct spinning polyester and short also gradually stabilized. During the week, the average price of viscose staple fiber was 11580 yuan / ton, down 188 yuan / ton compared with the previous week, and polyester staple fiber was 7156 yuan / ton, down 189 yuan / ton compared with the previous week.

　　 Price trend of chemical fiber staple since 2018

Three, the downward trend of gauze prices

With the sharp fall in cotton prices, the market of pure cotton yarn has been weakening, cotton yarn prices have kept falling, and the stock level of spinning enterprises has been increasing. The pressure is self-evident. In terms of starting up, the phenomenon of textile enterprises cutting down and shutting down is still continuing. In the week, the average price of 32 domestic cotton combed yarn was 20692 yuan / ton, down 164 yuan / ton compared with the previous week.

Trump's confidence in the imported cotton yarn market has been hit by the news that China has imposed a 10% tariff on the remaining 300 billion US dollars, and prices continue to descend. In the week, the average price of 32 Cotton Combed Yarns in India was 20526 yuan / ton, down 74 yuan / ton compared with the previous week, and the average price difference of 32 cotton combed yarn was 166 yuan / ton compared with the previous week, which was reduced by 90 yuan / ton compared with the previous week. The average price of 32 cotton carded yarn in Vietnam was 20140 yuan / ton, which was reduced by 110 yuan / ton compared with the previous week.

The overall turnover of cotton grey fabric continued to maintain a weak state. The downstream customers were cautious and wait and see, and prices continued to fall. In the week, the average price of pure cotton grey fabric (32*32 130*702/1 47 "twill) was 5.19 yuan / m, which was 0.01 yuan / m lower than the previous week's average price.

　　 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, the cotton textile market is still in a state of oversupply. Downstream consumption continues to slump, coupled with the tight global economic situation and the global stock market crash. It is expected that the price of raw materials will remain weak in the short term, and the product end will still be based on stock elimination, and prices will continue to maintain a weak trend.