Flame retardant fabric_Flame retardant fabric_Cotton flame retardant fabric_Flame retardant fabric information platform Flame-retardant Fabric News Facing the test, new cotton is about to be picked but overseas consumer confidence is insufficient. What will the market do?

Facing the test, new cotton is about to be picked but overseas consumer confidence is insufficient. What will the market do?



This week, domestic and foreign cotton prices fell back from highs, with the weekly average price still higher than last week’s level; domestic cotton yarn prices fell slight…

This week, domestic and foreign cotton prices fell back from highs, with the weekly average price still higher than last week’s level; domestic cotton yarn prices fell slightly after a sharp increase in cotton prices, while outer yarn prices continued to rise; polyester staple fiber prices continued to fall.

1. Domestic cotton prices fell back after a surge, and the average price was still higher than last week

This week, domestic cotton prices were still immersed in depression at the beginning of the week In the atmosphere of high expectations for the opening of new cotton scales, overseas financial markets plummeted across the board after Wednesday, and most commodities were sold off by funds, causing domestic cotton prices to rise and fall. From August 16 to 20, 2021, the average settlement price of the main cotton futures contract on the Zhengzhou Commodity Exchange was 18,143 yuan/ton, an increase of 341 yuan/ton or 1.9% from the previous week; the national cotton price represents the market price of standard grade lint cotton in the mainland. The average price of the B index was 18,261 yuan/ton, an increase of 568 yuan/ton or 3.2% from the previous week.

2. International cotton prices fell back after a surge, with the average price higher than last week

This week, the US cotton-producing areas were strong at the beginning of the week. Rainfall triggered supply concerns, and funds continued to drive international gains; after Wednesday, U.S. retail sales and other data fell sharply, the global commodity market plummeted, and international cotton prices fell in response. From August 16 to 20, 2021, the average settlement price of the main contract of Intercontinental Exchange Cotton Futures (ICE) was 94.2 cents/pound, an increase of 1.78 cents/pound or 1.9% from the previous week; representing the arrival of imported cotton at China’s main port The average price of the international cotton index (M) on shore is 106.16 cents/pound, up 2.08 cents/pound or 2.0% from the previous week. The import cost in RMB is 17,105 yuan/ton (calculated based on 1% tariff, including Hong Kong miscellaneous goods). and freight), an increase of 327 yuan/ton, or 1.9%, from the previous week. The international cotton price is 1,156 yuan/ton lower than the domestic cotton price, and the internal and external price difference has expanded by 915 yuan/ton compared with last week.

3. The transaction price of reserve cotton has increased steadily

This week, the auction of reserve cotton has operated smoothly, and the transaction price has increased steadily. rise. From August 16 to 20, 2021, the average transaction price of reserve cotton was 17,879 yuan/ton, an increase of 416 yuan/ton, or 2.38% from last week; among which, the average transaction price of Xinjiang cotton was 17,994 yuan/ton, an increase from last week 463 yuan/ton, an increase of 2.64%; the average transaction price of real estate cotton was 17,672 yuan/ton, an increase of 354 yuan/ton from last week, an increase of 2.05%.

4. Domestic cotton yarn prices rose first and then fell, while international cotton yarn prices continued to rise

This week, lint prices rose and fell. After driving up the rapid rise of cotton yarn, it has weakened slightly. Cotton yarn stocks in most cotton spinning mills have remained low, and it is said that some yarn traders are still stocking up. Due to the impact of the epidemic, seaborne cargo transportation continues to be tight, supporting the continued rise in the price of imported yarn. At present, the price of conventional foreign yarn is 535 yuan/ton lower than that of domestic yarn. After the upstream cotton and cotton yarn increased, it was more difficult for the downstream gray fabric to receive orders. The price of cotton cloth did not rise accordingly, and the market was in a strong waiting mood. Polyester staple fiber continues to fall along with crude oil prices.

5. Market outlook

Risk aversion in global financial markets has suddenly heated up , beware of weakening international cotton prices. The rapid spread of the Delta mutant strain has triggered concerns about weakening global demand. The Federal Reserve has discussed reducing the scale of bond purchases this year. Risk aversion in the capital market has increased, and the rise in asset prices has weakened marginally. In the international cotton market, as of now, the budding rate of new cotton in the United States has reached 93%, and the proportion of good seedlings continues to increase; monsoon rain conditions in India are good, and new cotton sowing has been completed at 92%; Brazilian cotton harvest has exceeded 60%, and the current main variables are weather conditions. The recent shortage of shipping containers has continued, especially the accumulation of goods at some ports in Europe and the United States. The pick-up period and payment period for textile and clothing have been delayed, and contract risks have increased accordingly. End-use textile and clothing consumption declined. In July, retail sales of clothing and clothing accessories stores in the United States fell by 2.59% month-on-month. In August, the University of Michigan’s consumer confidence index fell sharply beyond expectations, from 81.2 in the previous month to 70.2, setting a new low since 2011. . To sum up, as the Delta virus continues to ferment, short-term demand is expected to weaken, risk aversion in the international financial market has increased, and beware of marginal weakening in international cotton prices.

The domestic new cotton harvest is approaching, and the market is waiting for the sentiment to heat up. Data from the National Bureau of Statistics show that the growth rate of some major indicators fell back in July. The added value of the national textile industry above designated size fell by 1% year-on-year, and the textile and clothing and apparel industry increased by 8.1% year-on-year. The recent meeting of the Central Financial and Economic Commission pointed out that it is necessary to coordinate the prevention and resolution of major financial risks. In terms of the domestic cotton market, the current growth of new cotton in Xinjiang is normal and is about to enter the cotton spinning period. Cotton enterprises have gradually completed maintenance and are ready to purchase new cotton. As cotton prices retreated after reaching a new high, the decline in Zheng cotton warehouse receipts accelerated. As of August 20, the number of registered warehouse receipts for Zheng cotton was 419,000 tons, a decrease of 35,000 tons from last week. According to the latest data from the China Cotton Association, the total cotton turnover inventory nationwide at the end of July was approximately 1.731 million tons, a decrease of 468,000 tons from the previous month and 260,700 tons lower than the same period last year. The performance of the downstream market is divided. Some companies are still producing pre-orders. Some textile and garment companies in light textile markets such as Guangdong, Jiangsu and Zhejiang have reported that Christmas and Easter orders in developed countries such as Europe and the United States have been placed earlier than in previous years to ensure on-time shipment and delivery. . If the epidemic continues, foreign orders for textile and clothing in the fourth quarter may be lower than expected. The new cotton picking time is approaching next week, and the market is waiting for the opening of the scale to warm up.

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