Weekly Market Dynamics (17-23 June 2019)

During the week, domestic cotton prices rebounded slightly, the price of polyester staple fibers increased, and the downward trend of cotton yarn prices slowed down.

First, domestic cotton prices rebounded slightly, and the difference between inside and outside cotton prices was widened.

On June 18th, President Xi Jinping and the president of the United States made an ordinary telephone call to confirm the summit meeting of G20 and to communicate with us on Sino US trade issues. The market responded swiftly, and domestic cotton spot prices rose slightly. In the week, the average price of domestic 3128 grade cotton spot was 14091 yuan / ton, 347 yuan / ton more than the previous week, and the settlement price of Zhengzhou cotton futures contract was 13668 yuan / ton, an increase of 355 yuan / ton compared with the previous week.

When the international cotton spot price changed little overall in the week, it began to rebound at the beginning of the week with the favorable news of Sino US trade. In the week, the CotlookA index averaged 77 cents / pound, the same price as the previous week, and the settlement price of New York cotton futures contract was 66.44 cents / pound, an increase of 0.47 cents / pound compared with the previous week.

Under the influence of rising domestic cotton prices, the difference between cotton prices inside and outside the country has been widened. The average price difference between domestic and international cotton prices was 1018 yuan / ton, which increased by 303 yuan / ton compared with the previous week.

　　 Two, viscose staple fiber price declines slow, polyester staple fiber price increase

During the week, viscose staple fiber rebounded partially, production and marketing improved, and some factories began to raise prices slightly. Polyester staple fiber is driven by the rapid rise of polyester raw materials, prices continue to uplink. The average price of viscose staple fiber per week was 11156 yuan / ton, down 78 yuan / ton compared with the previous week, and the average price of PET staple was 7577 yuan / ton, an increase of 317 yuan / ton compared with the previous week.

　　 Three, the price of gauze is weak and stable.

When the cotton price rose, the pure cotton yarn market improved slightly. When the inquiry increased, the quotation remained stable, but the volume did not increase significantly. The average price of 32 cotton combed yarn in the week was 21118 yuan / ton, down 70 yuan / ton compared with the previous week.

In terms of imported yarn, India cotton yarn prices remained stable, Vietnamese yarn prices dropped faster, and the price difference between China and Vietnam increased. Among them, the average price of 32 Cotton Combed Yarns in India is 21300 yuan / ton, which is 140 yuan / ton lower than the previous week, higher than the average price of 32 cotton combed yarn in China, which is 182 yuan / ton, an increase of 70 yuan / ton compared with the previous week, and the average price of 32 cotton pure cotton carpets in Vietnam is 20540 yuan / ton, which is reduced by 560 yuan / ton compared with the previous week, and the average price difference of 32 cotton pure cotton combed yarn is 578 yuan / ton, which is increased by 32 yuan / ton compared with the previous week.

Grey fabric market continues to continue in the off-season market, slow shipping speed, continuous accumulation of inventory, and difficulties in linking subsequent orders. When Zhou Chunmian gray cloth (32*32130*70 2/1 47 "twill" average price of 5.27 yuan / ton, compared with the previous week by 0.03 yuan / meter).

　　 Four, outlook for the future

Although the leaders of China and the United States agreed to conduct in-depth communication on Sino US trade relations at the G20 summit, there are still many uncertainties. On June 20th, at the China International Cotton Conference, deputy director general Chen Da, director of the economic and Trade Department of the national development and Reform Commission, said that in the future, cotton regulation will be guided by the decisive role of the market in the allocation of resources, with the aim of maintaining reasonable price differentials both inside and outside as the main objective, with reserve control and import as the main means. Therefore, it is expected that within a short period of time, the probability of cotton price instability will increase at home and abroad, and the price of gauze will be dominated by stability.