How Can Cotton Price Go Away From The Fundamentals? Sticking Short And Weak Stalemate, Limiting Production But Not Increasing The Selling Price?

Market brief

Yesterday, funds poured into the stock market, and most of the domestic goods rose. Zhengcotton main force successfully stood on 12000, with a small increase in positions. The short-term trend of Zheng cotton was out of the basic demand of cotton, which will hit the high level near 12200, and closely watched Zheng cotton's main performance near 12200. With good price advantage, the reserve cotton will be closed for 4 consecutive working days. The short-term market auction atmosphere will continue to be hot. The cotton spot market price will continue to rise. The price of the cotton producers will be obvious. Xinjiang cotton and imported cotton prices have been raised. The price of real estate cotton is stable, and the price of individual cotton prices has been slightly reduced. Resources shipped relatively well, in the short term, Zheng cotton continued to rise in recent years, but downstream textile and garment demand continued to deepen in the off-season, yarn enterprises actively bidding low price cotton, reflecting the situation and demand for yarn enterprises shrink, short-term fundamentals have not improved, cotton prices still exist risk of return.

In July 6th, 8073.82 tons of resources were sold out of the cotton reserves, with a turnover of 8073.82 tons, with a turnover rate of 100%. The average transaction price was 11506 yuan / ton, up 111 yuan / ton compared with the previous trading day, and the price of 3128 yuan was 12926 yuan / ton, up 132 yuan / ton compared with the previous trading day. Xinjiang cotton traded average price of 11646 yuan / ton, up 68 yuan / ton compared with the previous trading day, Xinjiang cotton 3128 price 13115 yuan / ton, up 78 yuan / ton compared with the previous trading day. The average price of real estate cotton was 11646 yuan / ton, up 166 yuan / ton compared with the previous trading day, and the price of real estate cotton was 3128 yuan 12720 yuan / ton, up 201 yuan / ton compared with the previous trading day. This week (July 6th -7 10), the selling price was 11895 yuan / ton (folded standard grade 3128B), up 58 yuan / ton compared with the previous week.

Acrylonitrile market prices continue to be weak downward, some factory prices are down, acrylonitrile supply is expected to increase, downstream demand is mostly in the off-season, the spot market is not enough to buy gas, middlemen shipping is not smooth, traders lack confidence in holding commodities, the market has heard of low price offers, and the market is watching the air atmosphere. Next, manufacturers are expected to have a limited price action and pay attention to factory information guidelines. Acrylic staple fiber prices stabilized price consolidation, raw materials acrylonitrile mainstream factory price weak stable finishing, acrylic fiber cost surface support is still at the same time, downstream yarn market stability, but downstream users continue to buy low, acrylic manufacturers at present, good production and marketing, the start-up rate is also higher than the same period, some industry cautious watch and expect short-term acrylic fiber price stabilization.

According to investigation, the cluster weaving market has been weakening since June. By the end of June, the average operating rate of cluster weaving enterprises was around 50%, and the utilization rate of weaving capacity was below 40%. Most clusters indicated that the operation of enterprises in June was no better than that in May, and affected by the epidemic and the arrival of the traditional off-season. The market demand was weak, and the stock of products continued to increase. Problems such as lack of order and capital pressure still exist. Enterprises adjust production, reduce start-up and maintain operation. According to the market, the order of pure cotton fabric market is relatively stable, the market demand for colored fabrics and denim is rather weak, orders are relatively large year-on-year decline, and the profit margins of enterprises are further compressed. From the domestic market, affected by foreign epidemic situation, exports to domestic enterprises increased significantly, domestic sales orders intensified, and sales of a weaving cluster in June decreased by more than 20% compared with May. From the export market, export orders have not seen a marked improvement as a whole. The number of orders and goods exported by individual enterprises in Africa has increased significantly compared with that in May.

According to the financial report, in 2019, Shanghai Textile Co., Ltd. achieved operating income of 75 billion 434 million yuan, compared with 84 billion 219 million yuan in the same period last year, reduced by 8 billion 766 million yuan, operating costs 75 billion 41 million yuan, compared with 83 billion 174 million yuan in the same period last year, reduced by 8 billion 133 million yuan, total profit 490 million yuan, compared with 1 billion 767 million yuan in the same period last year, reduced 1 billion 277 million yuan, attributable to the parent company's net profit. Run 152 million yuan, compared with 1 billion 107 million yuan in the same period last year, a decrease of 955 million yuan. In the first quarter of 2020, Shanghai Textile Co., Ltd. achieved operating income of 15 billion 696 million yuan, a decrease of 3 billion 519 million yuan compared with 192.15 in the same period last year, with a total profit of 187 million yuan, a decrease of 317 million yuan compared with 504 million yuan in the same period last year, and a net profit attributable to the parent company of 85 million 253 thousand yuan, a decrease of 118 million yuan compared with 203 million yuan in the same period last year.

A few days ago, Wei Qiao textile Limited by Share Ltd successfully passed the formal verification of the INDITEX inspection plant, becoming a INDITEX supplier of all brands including ZARA. The project passed the preliminary examination in May and passed the formal examination in June. INDITEX owns ZARA, PullandBear, MassimoDutti, Bershka, Stradivarius, Oysho, ZaraHome, Uterque, ZaraKids and other clothing brands. Among them, ZARA brand stores account for only 1/3 of all INDITEX companies, but their sales account for about 66% of total sales. Generally speaking, the ZARA inspection plant is actually a INDITEX inspection factory. After the inspection plant passes, all its brands are applicable. The INDITEX factory will be evaluated by the supplier after the formal verification is passed. There are four levels: Class A, B, C and D. Different levels have different periods of validity and supply. The higher the level is, the longer the validity period is, the wider the scope of supply will be. Wei Qiao textile Limited by Share Ltd is a INDITEXA supplier. This also means that Wei bridge and international branding business have entered a new stage.

According to the official website of the securities and Futures Commission, Zhejiang Titan Limited by Share Ltd submitted the IPO prospectus for A shares, which is also the fourth time for the company to submit materials in June 2016, March 2018 and August 2019. Titan shares will be issued to the public without more than 54 million shares. The total amount of investment to be raised will be 459 million 549 thousand yuan. After the deduction of the issuance cost, the fund will be invested in "intelligent spinning machine manufacturing base construction project", "marketing network information platform project" and "supplementary Liquidity Fund Project". Tan shares will further enrich the company's product line, improve the company's product automation, digitalization and intelligent level, and form a complete industrial chain layout from the design of textile machinery, production of core and key parts to the final assembly debugging.

On the morning of June 28th, Guangxi's "double hundred double new" industrial project development headquarters held the second quarter of 2020, Guangxi's "double hundred double new" industrial projects. Guigang City in Pingnan County textile and Garment Industrial Park knitting base project site set up a venue to complete the completion ceremony, the completion of the completion of 3 "double hundred double new" industrial projects, with a total investment of 2 billion 80 million yuan. Among them, 1 new projects (Guangxi World Textile Group Investment Co., Ltd. Pingnan County textile and Garment Industrial Park knitting base project), 2 projects completed and put into operation. The total investment of the textile and garment industrial park of Guangxi World Textile Group Investment Co., Ltd. is 4 billion 900 million yuan, located in Pingcheng County Dacheng Industrial Park, with a total land area of 2000 mu. The textile and clothing industrial park adopts the hot spot joint supply, the sewage centralized and centralized treatment, reduces the pollution source, saves the investment. The efficient use of land will make the industrial park a green and recyclable environmental demonstration park. It is understood that the knitting base project of the textile and garment industry garden project was officially launched in June 28th, with a total investment of 670 million yuan, covering an area of 1000 mu, mainly building standard workshop 500 thousand, and supporting facilities such as power supply and distribution, water supply and drainage, roads, greening and so on. The entire textile and garment industrial park project has been completed and put into operation. It is estimated that the output value will be more than 10 billion yuan, and the tax revenue is more than 300 million yuan. The total number of employment personnel can reach 12000, and the output value of the upstream and downstream industries will exceed 60 billion yuan.

In July 3rd, Jiangsu Oriental Shenghong Limited by Share Ltd (000301.SZ) announced that the company's two tier stock holding company Shenghong refining and Chemical Co., Ltd. intends to apply to the bank for a total of no more than the equivalent value of 41 billion 500 million yuan in the amount of medium and long-term loans for the construction of Shenghong refining and chemical (Lianyungang) Co., Ltd. 16 million tons of refining and chemical integration projects, the company intends to provide full full and joint liability for the above loans. The specific terms of guaranty guarantee, guarantee period and so on shall be based on the guarantee agreement signed between the company and the bank. According to the financial report, in 2019, Dongsheng Hong realized business income of 24 billion 900 million yuan, an increase of 6.98% compared with the same period last year. The net profit attributable to shareholders of listed companies was 1 billion 610 million yuan, an increase of 67.18% over the same period last year. In 2020, a quarterly report showed that its operating income was 4 billion 230 million yuan, down 24.05% compared to the same period last year. The net profit attributable to shareholders of listed companies was 197 million yuan, down 44.94% from the same period last year.

In June 28th, the 50 key technologies of Anhui science and technology Limited by Share Ltd, which were declared by the province of Tongling, were based on artificial intelligence vision, such as the tube yarn finishing system project, and so on. The key projects of the "science and technology help economy 2020" have been approved by the Ministry of science and technology. According to the relevant notice, they decided to set up the key technology projects recommended by the Ministry of science and technology of Anhui for "science and technology help economy 2020". It is understood that the 50 "science and technology help economy 2020" key projects related to manufacturing, information technology, materials and other fields, will be allocated 30 million yuan in total and 30 million yuan in Anhui, and will be directly incorporated into the Anhui science and technology achievements database.

A few days ago, the achievement of "multiple spinning and spinning technology and its application" jointly awarded by Anhui Huamao textile Limited by Share Ltd and Wuhan Textile University won the first prize of Anhui science and Technology Progress Award in 2019. The multiple spinning technology and its application project have pioneered the method of using rotary grooves to reassemble the triangular area of yarn to achieve agglomeration. The serial semi open multi ply spinning technology and core device have been invented. Through the innovation and modification of ring spinning frame, the yarn has greatly reduced the harmful hairiness, and the outer layer has been tightly and polished, and the internal structure is soft, which has significantly improved the yarn quality. Comprehensive quality. At the same time, it has the advantages of simple equipment operation, no additional energy consumption, low cost, Yi Weihu, long life and so on, and is adaptable to various raw materials and different yarn branches.

Recently, Zhejiang Province officially released the first live broadcast electricity supplier domain standard "live broadcast electricity talented person training and the appraisal standard". The specification was put forward by the Zhejiang Provincial Department of Commerce, and it was drafted by the Zhejiang provincial e-commerce promotion association as the main drafting unit in accordance with the rules given by GB/T 1.1-2009. According to the introduction, the content of the specification involves talents, operations, management, services, evaluation, marketing and other sub fields. It stipulates the skill level, professional knowledge content, skill training and training, talent assessment and certification of live broadcasting business talents. The specification has been framed in terms of terms and definitions, the level of live broadcasting business skills, the basic content of professional knowledge of live broadcasting providers, the training and training of live electronic business skills, the evaluation and certification of direct seeding providers, etc. It is understood that in last month, the China Advertising Association also released the first "code of conduct on live broadcast marketing" in China, which was officially implemented in July 1st this year, which is also the first professional norm of live broadcasting business in China. The norms have been comprehensively defined and standardized for all kinds of roles and behaviors in direct seeding electricity providers.

According to the latest information, the Saudi Customs Department announced that import tariffs on some products had been raised since June 20th, and the affected products were reduced to 1449 from 2600 of the previous notices, with an adjustment range of 0.5%-15%. This tariff adjustment product includes: animal and plant products: 224 products; chemicals and rubber and plastic products: 50 products; leather: 27 products; paper and rubber products: 38 products; textile and footwear products: 91 items; minerals, tiles, metals and steel products: 878 products; machinery, electrical appliances and auto parts products: 115 products, instruments and furniture. Toys, works of art and miscellaneous products: 26 products. Saudi Arabia's local trade and economic personnel believe that the reasons behind the government's import tariff increase are manifold, including protecting domestic industries and increasing state revenue. In the face of the new crown crisis and its global economic recession, most countries have launched an expansionary fiscal stimulus plan to boost domestic economic activity. Saudi Arabia unveiled a plan to increase its value-added tax by three times. From July 1st, the rate of VAT increased from 5% to 15% to increase additional revenue.

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