Should Cotton Prices Fall Below Historical Lows? Sticky Short Cut Negative Quote But Hit 9000, Yarn Price War Intensified?

Market brief

In March 24th, China Cotton Reserve Management Co., Ltd. planned to purchase 20000 tons of Xinjiang cotton, and the actual turnover was 20000 tons, with a turnover rate of 100%. The average price was 12313 yuan / ton, of which 20000 tons were in the mainland bank. From December 2nd to March 24th, the total turnover of Xinjiang cotton reached 311000 tons, of which 12480 tons were accumulated in the Xinjiang warehouse, and 298520 tons in the mainland stock market. A total of 97 enterprises were auctions. This week (March 23rd -3 27), the highest price limit was 12450 yuan / ton (standard 3128B price), down 451 yuan / ton compared with the previous week.

Zheng cotton "V" reverse, the main contract is reduced, the contract in the far month is short, the market divergence of the key points is increased, and the fund has a lot of impulsiveness, but the downstream demand is weak, and the market is pessimistic. It is expected that Zheng cotton will continue to shake the bottom. Spot cotton prices follow Zheng cotton continues to fall, the market bearish atmosphere, the recent cotton mill procurement continued to shrink, the cotton lint spot purchase and sale atmosphere is deserted, the current downstream market order reduction or cancellation is normal, spring textile and clothing to inventory time limited, summer demand is still unknown, and cotton fabric is not the main body, the enterprise generally cautious wait-and-see attitude, comprehensive view. Domestic demand is weak, coupled with the pessimistic market expectations caused by the epidemic, the short term cotton price trend is hard to find support. It is estimated that Zheng cotton has a bigger probability of falling below the historical low value, and the corresponding decline of cotton price is the main factor.

The price of acrylonitrile has been arranged sideways. The main factory's monthly report has been published. Most of the intermediate manufacturers' reports are mainly factory prices. The market has seen that the air is not decreasing. Some markets have heard of low price quotations. The terminal demand has been slow to improve. Downstream users have been watching the new news guidelines of acrylonitrile plants. The purchasing mentality is cautious. The supply of mid and long term supply is expected to be insufficient, and the price of acrylonitrile is expected to continue to be weak. The price of acrylonitrile fibers has been temporarily stabilized. Some factory prices will be lowered. Attention should be paid to the factory's clear guidelines, the accumulation of downstream plant products, the general purchasing mentality of raw materials, and the short term concern about factory information, and the price of acrylic fiber is expected to be weak and volatile.

On March 23rd, the Guangdong Provincial Government Information Office held a press conference to announce the rumors that the 127th Canton Fair will be postponed. Ma Hua, deputy director of the Provincial Department of Commerce, said that considering the current global epidemic situation, especially the risk of overseas epidemic input is high, the 127th spring Canton Fair will not be held as scheduled in April 15th. Next, Guangdong will comprehensively assess the epidemic situation and actively make recommendations to relevant state departments.

As announced by Zheng Shang, since March 25, 2020, the trading margin standard of cotton and cotton yarn futures contracts has been adjusted to 7%, and the price limit has been adjusted to 6%.

At 9:38 on March 23rd, the fire command center of Jiaxing City, Zhejiang province received an alarm: the fire shop of the temple town of Hua Shan textile factory in Tongxiang Town, Tongxiang City, Henan Province was on fire. After receiving the alarm, the center immediately dispatched a fire rescue station around the West Road, Wu Tung, Jiaxia and other professional teams, such as rivers and mountains, Shimen and so on. A total of 17 fire engines and 104 firefighters went to the scene for disposal. The Jiaxing fire rescue detachment's full service headquarters was dispatched. At 10 hours and 01 minutes, the fire force arrived and organized fire fighting immediately. According to preliminary understanding, the fire scene is a single story steel structure, the main combustion material is wool yarn, no personnel trapped at the scene. At 10:20, the fire at the scene was basically under control. At present, the cause of fire and property losses are being further verified.

In March 23rd, we learned from Wuhan Textile University that the school, based on the "live broadcast platform" in the school employment information network, launched 48 online courses for graduates: career planning, career guidance and entrepreneurial guidance. The contents include resume writing, interview guidance, career planning, and entrepreneurial guidance, etc. three. According to the introduction, Wuhan Textile University has also integrated various resources, including various online recruitment platforms such as the Ministry of education's "24365", the Central Committee of the Communist Youth League, "thousand schools and ten thousand Gang jobs," Hubei province's "100 schools linkage", and Taizhou's "100 school recruitment talents recruitment". It recommends more than 5 pieces of information for graduates.

At nine ten on the 24 th, 12 employees of Zhejiang Sheng Fa textile printing and dyeing Co., Ltd. returned to Hubei. This is also the first batch of migrant workers from Changxing County who arrived in Hubei. After three days of concentrated isolation, all of them arrived in the green code and returned to work. It is understood that the 12 employees from Hubei Xiangyang, Tianmen and other places, are senior electricians, dyeing vats, printing and other professional and technical personnel, their presence, to provide protection for the development of enterprise product technology. At present, the total number of workers returning to work has exceeded 95%, and the capacity has been restored.

In March 19th, at the construction site of Ningxia Hengda textile Polytron Technologies Inc 300 thousand stage high quality spinning three phase project construction site, we found that at present, the main body of the three stage digital spinning and weaving workshop has been completed, and the workers are carrying on interior decoration, and the scene is busy. Now the construction of the three phase project is almost coming to an end. It is expected to be completed in April this year and will enter the installation stage. It is expected to be put into operation in June this year. It is reported that Ningxia Hengda textile Polytron Technologies Inc 300 thousand spindles high-end spinning item phase project scale 75 thousand spindles, two phase project scale 75 thousand spindles, now has been put into operation. The three phase of the project is 30 thousand spindles of high-end spinning and 198 new high-end looms, with a planned investment of 250 million yuan. After all the production has been put into operation, the annual output value can be increased by 350 million yuan, 20 million yuan in profits and taxes, and 500 new jobs. Annual gross sales revenue can reach 800 million yuan, and profits and taxes will be 50 million yuan. After the three phase of the project is completed and put into operation, it mainly produces all kinds of yarn series of high quality pure spinning and blending, and extends to weaving wide cloth to fill the blank of local weaving production.

A few days ago, at the Felix project construction site in the modern high-end textile industrial zone near Jiangsu, we saw the tower crane standing, the excavator waving arms, dozens of workers wearing masks, and busy with leveling the floor. What is being done is the leveling arrangement of the first workshop and the construction of the dining hall and dormitory building. The main structure of the whole project will be completed at the end of May, and will be installed at the end of June. Try to finish. The total investment of the project is US $30 million, with a registered capital of US $10 million. It mainly produces pure cashmere, wool, rabbit hair, camel hair, silk and its blended fabrics. According to the introduction, factory equipment is imported from Italy, Switzerland and other countries, including 6 international advanced dyeing and 4 drying products lines, and 80 sets of matching equipment. After commissioning, the products are mainly exported to Europe and the United States, with an annual output of 900 thousand high-end clothing fabrics, which can achieve sales of 250 million yuan and 5 million yuan in taxes annually.

Recently, the National Standard Committee issued a notice, according to the national standardization management committee standard revision plan, the national textile Standardization Technical Committee Secretariat has organized the "children mask technical specification" national standards for the draft, now for public comment. The deadline for comments is March 26, 2020.

From Tianjin University of Technology, Professor Qian Xiaoming, a professor of textile science and engineering, recently led a scientific research team to deal with the problem of wearing more masks and longer odour caused by the wearing of masks during the epidemic period. In collaboration with the enterprises, the effective ingredients of natural Artemisia argyi were added to the fiber high score materials of respirators, so that the mask had natural antibacterial and bacteriostasis activities. Yes. At present, this new material has been applied to many mask manufacturers, directly supporting the fight against "epidemic".

The French government is appealing to more fashion and textile companies to turn over masks, and to assist other companies in producing alcohol, disinfectants and other hygienic products, if conditions permit. Kering recently said it would buy 3 million surgical masks from China and donate it to French health service providers. In addition, Gucci, Paris and Saint Laurent of the group will also start producing masks, and the manufacturing process and materials have been approved by the relevant departments. Kai Yun group said that once the production process and materials were approved by relevant departments, the factory of Paris and Saint Laurent will be put into production immediately. Gucci also plans to produce 1 million 100 thousand masks and 55 thousand medical protective clothing in Italy.

Market curve