This week, domestic cotton prices weakened again after rising slightly, and international cotton prices rose slightly; domestic cotton yarn prices continued to fall, and international cotton yarn prices stopped rising and fell; polyester staple fiber prices continued their decline.
This week, high-priced new cotton showed signs of inquiry, but textile companies had insufficient orders. There were few transactions in the market, and cotton prices turned weak again after rising slightly. From November 15 to 19, 2021, the national cotton price B index, which represents the market price of standard-grade lint cotton in the mainland, averaged 21,054 yuan/ton, a decrease of 204 yuan/ton or 1.0% from the previous week; the main cotton futures contract of Zhengzhou Commodity Exchange The average settlement price was 21,717 yuan/ton, an increase of 225 yuan/ton or 1.0% from the previous week; the Chinese cotton purchase price S index, which represents the average price of white cotton grade 3 seed cotton and lint cotton in the country’s main cotton-producing provinces (regions), was 20,250 yuan/ton. tons, down 210 yuan/ton from the previous week.
This week, better U.S. retail sales data boosted optimism in the capital market and boosted International cotton prices rose. As poor US cotton export data dragged down market confidence, international cotton prices rose and then weakened. From November 15 to 19, 2021, the average settlement price of the main contract of the U.S. Intercontinental Exchange Cotton Futures (ICE) was 115.43 cents/pound, an increase of 0.63 cents/pound or 0.5% from the previous week; representing the main port of imported cotton in China The average price of the international cotton index (M) at the CIF price is 131.5 cents/pound, up 1.0 cents/pound or 0.8% from the previous week, and the import cost in RMB is 20,982 yuan/ton (calculated based on 1% tariff, including Hong Kong miscellaneous and freight), an increase of 155 yuan/ton, or 0.7%, from the previous week. The international cotton price is 71 yuan/ton lower than the domestic cotton price, and the internal and external price difference has narrowed by 360 yuan/ton compared with the previous week.
This week, the bidding market for reserve cotton was active, with increased price increases and transactions Average price rises. From November 15 to 19, 2021, the average transaction price of reserve cotton was 19,887 yuan/ton, an increase of 771 yuan/ton, or 4.0% from the previous week; among which, the average transaction price of Xinjiang cotton was 22,937 yuan/ton, an increase of 1,318 yuan/ton from the previous week. yuan/ton, an increase of 6.1%; the average transaction price of real estate cotton was 18,249 yuan/ton, a decrease of 56 yuan/ton, or 0.3% from the previous week; the average transaction price of imported cotton was 23,121 yuan/ton, an increase of 154 yuan/ton from the previous week. An increase of 0.7%.
This week, yarn orders from textile companies are still insufficient, and companies are replenishing raw materials. Mainly purchasing cotton for reserves, domestic cotton yarn prices continue to fall. As the competitiveness of high-priced foreign yarns from India and Pakistan further declines, market inquiries and transactions slow down, and prices in the international cotton yarn market stop rising and fall. At present, the price of conventional domestic yarn is 553 yuan/ton lower than that of imported cotton yarn. The gray fabric market is not selling well, corporate inventories are rising, and the price of pure cotton fabrics continues to fall. The price of polyester staple fiber fluctuated and fell with the PTA.
Northern Hemisphere cotton listing process accelerates , terminal consumption prospects are sluggish. Federal Reserve Chairman Jerome Powell’s inflation dashboard is starting to show some signs of overheating, and the president of the St. Louis Fed is urging the Fed to speed up tapering off stimulus measures. In the international cotton market, as of November 4, the US cotton harvest progress was 65%, basically catching up with the same period last year. Continuous rainfall in Australian cotton areas is generally conducive to farm water collection, and the area planted in dryland fields is expected to reach a new high. There is widespread rainfall in Argentina’s cotton areas, which significantly benefits the cotton planting process. The recent high cotton prices have suppressed downstream demand. Last week, the US cotton contract volume was 35,700 tons, a year-on-year decrease of 38.8%; the shipment volume was 19,100 tons, a year-on-year decrease of 73.2%. The pace of purchasing cotton raw materials by Southeast Asian textile companies has slowed down, and the international cotton textile upstream and downstream markets have fallen into a trap. Stalemate. U.S. trans-Pacific container shipping costs fell last week, but congestion at major U.S. ports such as Los Angeles and California has not yet eased. Survey results from the International Textile Federation (ITMF) show that global textile production capacity utilization has hovered around 70% since May 2021, and companies are struggling to cope with rising costs and transportation delays. The retail sales data of U.S. terminal clothing and clothing accessories stores in October decreased by 0.71% month-on-month, and the consumer confidence index fell to a 10-year low in early November. To sum up, in the short term, inflation concerns continue, a large amount of northern hemisphere cotton is on the market, consumer confidence is low, and the Thanksgiving holiday is coming next week, and the international market is becoming cautious.
The domestic cotton market has sufficient resources, and it is difficult to sell new cotton at high prices. Data from the National Bureau of Statistics show that the added value of industries above designated size actually increased by 3.5% year-on-year in October 2021, of which the textile industry fell by 5.9%. China’s central bank said it would focus on keeping monetary policy stable and would focus on supporting small and medium-sized enterprises and environmental protection projects. In the domestic cotton market, seed cotton picking has basically ended, and lint processing has accelerated. According to data from the National Cotton Market Monitoring System, as of November 18, 2021, a total of 2.836 million tons of lint cotton had been processed nationwide, a year-on-year decrease of 558,000 tons, and 308,000 tons of lint cotton had been sold, a year-on-year decrease of 750,000 tons. During the large-scale listing period, the transactions of high-priced new cotton were still weak, and the spot quotations of lint cotton continued to decrease slightly. The survey results of the National Cotton Market Monitoring System show that the current raw material inventory of textile enterprises is about one month, and the start-up rate is flat or slightly decreased. More than half of the enterprises have generally reduced domestic and foreign sales orders for yarn and gray fabrics, and the quantity of product inventory has increased significantly. Enterprises are forced to Due to financial pressure, the profit margin has expanded. In the short term, speculation in the capital market has subsided, cotton resources are abundant, and the domestic spot market may continue to be weak and volatile.
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