Last week (December 27-31), international crude oil rose sharply, which led to the recovery of the stock market and commodity market. Among them, U.S. cotton ICE futures and Zheng cotton both rose to the highest point in nearly four weeks. Raw material prices were firm, but downstream cotton yarn internal and external Market performance varies widely.
As of December 30, Xinjiang had processed a total of 4.76 million tons of lint cotton, and sold 938,000 tons, with a sales rate of less than 20%. The main reason was that the price of seed cotton increased sharply during the acquisition of new cotton, and the processing costs of ginning companies were too high, making it difficult for downstream market customers. Bear in mind that based on the purchase of new spinning yarn, textile companies are basically at a loss. Therefore, in order to reduce corporate business risks, textile companies have taken advantage of the double holidays to reduce cotton use in production, which has clouded market consumption.
Although the prospects for cotton sales are bleak, Zheng cotton is obviously on the strong side. It opened slightly downward last Monday and then rose continuously for four days, and continued to hit new stage highs. The market has strong momentum, and fundamentals and futures trends continue to emerge. Departure.
That week, the domestic cotton yarn price trend also ran counter to the cotton yarn futures price. Not only did the cotton yarn quotations not follow the rise, but the bargaining space increased. It is reported that as the New Year approaches, weaving factories above designated size in Guangdong, Jiangsu and Zhejiang and other places have plans to stock up at low prices. Purchasing intentions have rebounded slightly, and cotton yarn transactions have temporarily recovered. Since cloth factories and downstream production and processing links are scheduled to have a holiday in mid-January, cotton yarn companies have taken this opportunity to cut prices to achieve the purpose of withdrawing funds from warehouses, resulting in some loosening of yarn prices.
This week, the price trend of domestic cotton yarn was different. Driven by the rise in US cotton ICE, cotton yarns from India, Pakistan, Vietnam, Bangladesh and other Southeast Asian origins began to rise, regardless of whether they were shipped cargo, bonded cargo or customs clearance yarn. Especially on December 29-30, international cotton futures and spot prices rose together. In addition, orders in the fourth quarter of 2021 accelerated their return to Southeast Asia and other countries. Downstream textile companies had sufficient orders, and some orders have even been scheduled to May-June 2022. This gives countries in Southeast Asia and other countries more confidence to raise cotton yarn prices.
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