According to data from SunSirs, the price of 3128B lint cotton was around 16,846 yuan/ton on the 14th, an increase of 285 yuan/ton from last Friday, an increase of 1.72%, and a month-on-month increase of 4.07%.
Global cotton stocks are reduced
Domestic and foreign cotton prices rise
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1. Price Quotes
2. Market Analysis
The domestic cotton market has risen steadily. On July 14, the average price of China Cotton Index 3128B grade was 16,779 yuan/ton. An increase of 126 yuan/ton from the previous day. Domestically, reserve cotton rolls were welcomed by textile enterprises due to factors such as price, quality, and flexible procurement, and all transactions were completed that day. On July 13, the weight of cotton reserves sold was 9552.797 tons, and the average transaction price was 16506 yuan/ton, which is 17761 yuan/ton at a discount of 3128B. On July 14, the settlement price of Zheng Cotton’s main 2109 contract was 16,700 yuan/ton, an increase of 2.4% from last Friday.
The July global production demand forecast released by the United States Department of Agriculture shows that in 2021/22, global cotton ending stocks will be reduced by 1.6 million bales from the previous month. Global consumption expectations are continuing to recover, and the global cotton inventory-to-consumption ratio continues to decline. Therefore, after the release of the report, U.S. cotton closed higher, and Zheng cotton prices rose accordingly due to this impact.
3. Downstream industrial chain
In terms of cotton spot, the overall textile enterprises Willingness to purchase remains weak, with purchases based on rigid needs being the main focus. On the downstream side, with the recent increase in the prices of Zheng cotton and Zheng yarn, some textile companies have raised yarn prices, but the transactions have not improved. Spinners mainly ship early orders, and the spot inventory is low, so they are paying attention to the situation of new orders. The hot selling of cotton reserves shows that downstream demand is acceptable, the market is relatively optimistic, and the decline in global cotton ending stocks supports cotton prices.
Imported yarn spot shows a steady to strong trend
The spot price of imported yarn showed a steady to strong trend, and traders who had not raised prices in the early stage raised their quotations again. Judging from the transactions, the market trading atmosphere in Nantong is good, while other regions are average. In terms of price: a trader in the Guangdong market quoted C10S, a first-line yarn-based siro spinning product, around 21,700-21,800 yuan/ton including tax; a trader in the Jiangsu and Zhejiang markets quoted an Indian C21S woven and bleachable product at 23,600 yuan/ton.
The overall price of imported yarn has increased steadily, while the price of printed yarn has increased slightly. The main reason is that the rising price of printed cotton has driven up the price of cotton yarn. The outer price of Yueshan yarn remained stable.
Currently, Ho Chi Minh City has begun to implement a 15-day social isolation. Ho Chi Minh City in the south and Bac Giang Province in the north have been seriously affected by the epidemic. Textile factories in nearby areas have been shut down, but other The region currently maintains normal production. The price of Pakistani yarn is stable, and Siro spinning is mainly exported. In terms of price: the price of cross-border yarn is mainly stable. The price of general quality C21S woven by yarn mills is US$3.4-3.5/kg, equivalent to RMB 25,300-26,000/ton, with August shipping date and September shipping date, and sight letter of credit. The external price of printing yarn is stable and rising. Traders’ general quality JC32S knitted fabrics can be priced at US$3.85-3.89/kg, discounted to RMB 29,700-30,000/ton, with August shipping date and 90-day letter of credit.
China Cotton Association Market Index in June
Monitoring objects: 18 100 cotton textile enterprises in major cotton producing and consuming provinces
In June, the state continued to introduce measures to strictly control the rise in commodity prices, and domestic cotton prices rose steadily. Driven by the rise in international commodity prices, international cotton prices have increased more than domestic prices, and the price difference between domestic and foreign cotton prices has narrowed compared with the previous month. During the month, the downstream textile industry showed signs of slowing down, and new orders slowed down. However, due to the large number of early orders, the overall operating rate remained high. The prices of cotton yarn and other textile finished products mostly increased, sales profits remained at a high level, and cotton demand remained strong.
1. Domestic and foreign spot price changes
1. Domestic Spot prices rose month-on-month
In June, affected by the trend of the bulk commodity market, domestic cotton prices maintained an upward trend in the first half of the year and remained volatile in the middle and late half. The operating rate of textile enterprises is relatively high, raw material inventories have declined, and the demand for cotton is still good. At the end of the month, China’s cotton price index (CCIndex3128B) was 16,097 yuan/ton, an increase of 337 yuan month-on-month; the monthly average price was 15,985 yuan/ton, an increase of 35 yuan month-on-month, and a year-on-year increase of 4,027 yuan/ton.
2. Long-staple cotton prices rise
In June, affected by the rise in the price of fine-staple cotton and the sharp rise in international long-staple cotton, the price of domestic long-staple cotton rose sharply. At present, domestic long-staple cotton resources are small and the quality varies greatly. At the end of the month, the transaction price of grade 137 was 26,000 yuan/ton, a month-on-month increase of 3,200 yuan, which was higher than the China Cotton Price Index (CCIndex3128B) of 9,903 yuan in the same period. The price difference expanded by 2,863 yuan from the end of the previous month. Yuan.
3. International cotton prices closed up, and the price difference between domestic and foreign cotton narrowed
In June, international cotton futures and spot prices rose overall. China’s imported cotton price index FC Index M averaged 96.34 cents/pound in month, up from the previous month.It rose 2.3 cents; it was 98.37 cents/pound at the end of the month, up 5.98 cents month-on-month. The 1% tariff discounted RMB 15,541/ton, which was lower than the domestic spot price of RMB 556 in the same period. The price difference between domestic and foreign cotton narrowed by RMB 418 compared with the end of last month.
4. Most prices of finished cotton yarn products have increased
In June, the prices of finished textile cotton yarn and polyester staple fiber continued to rise, while the prices of viscose staple fiber fell slightly. Specifically, the transaction prices of pure cotton yarn KC32S and combed JC40S at the end of the month were 25,260 yuan/ton and 29,050 yuan/ton, up 190 yuan/ton and 390 yuan/ton respectively from the end of the previous month; polyester staple fiber at the end of the month was 7,000 yuan/ton. It increased by 320 yuan from the end of the previous month. The price of viscose staple fiber at the end of the month was 12,300 yuan/ton, down by 200 yuan/ton from the previous month.
2. Analysis of factors affecting price changes at home and abroad
1 , 600,000 tons of cotton reserves will be rolled out
On July 2, relevant departments issued an announcement that in order to optimize the structure of central reserve cotton and ensure good quality, some central reserve cotton will be released in 2021. Cotton is rotated out. The rotation time is from the national statutory working days from July 5, 2021 to September 30, 2021; the total amount is arranged to be about 600,000 tons, and balanced delivery is implemented in principle; the listed sales floor price will be determined based on market trends.
2. Cotton shipments out of Xinjiang will decrease
2021 In June, a total of 339,500 tons of cotton were shipped out of Xinjiang, a decrease of 71,500 tons or 17.4% from the previous month. Among them, 202,900 tons were shipped by road, a month-on-month decrease of 81,700 tons, and a year-on-year increase of 35,900 tons. A total of 136,600 tons of cotton from Xinjiang professional warehouses were shipped by railway, a month-on-month increase of 10,200 tons, and a year-on-year decrease of 6,800 tons. From the perspective of transportation prices, compared with railway freight prices, road freight prices have increased significantly and have obvious advantages in timeliness.
3. Zheng cotton futures increased compared with last month, and registered warehouse receipts decreased significantly
In June, Zheng cotton futures increased compared with the previous month. As of June 30, the end-of-month settlement price of the main contract CF109 was 16,020 yuan/ton, an increase of 590 yuan/ton, or 3.68%, from 15,430 yuan/ton at the end of last month. At the end of the month, 16,643 warehouse receipts were registered, equivalent to 665,700 tons, a decrease of 103,500 tons from the end of the previous month, and the registered warehouse receipts decreased significantly.
4. Textile purchases and sales are smooth, and cotton demand remains strong
6 This month is originally the traditional off-season for textiles. This year, due to the large number of early orders, the startup rate of enterprises has remained high, sales have remained smooth and profits have been good, and cotton demand has continued to maintain a good level. However, as the weather gets hotter, the textile industry shows signs of slowing down, and new orders in the market have slightly decreased.
Editor’s Note
Zheng Cotton continues to maintain its upward trend, and the market Emotions pick up. The cotton yarn inventory of former spinning enterprises is low, which has certain support for yarn prices. We will pay attention to the changes in cotton yarn and gray fabric orders in the future. </p
