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SunSirs: The Export Price of Cotton Decreases, The Price of Yarn Declines Slightly

September 12 2019 17:28:39     SunSirs (Linda)

SunSirs: Sep 11

According to SunSirs’ price monitoring, the average price of 32S (pure cotton yarn for knitting) in Shandong is 21,920RMB/t on Sep 11, 12.58% lower than that of the same period of the last year.

The performance of upstream cotton is not good, cotton yarn has been in a weak downward state in the recent year. According to relevant statistics, from Jan to Jul 2019, China's cumulative export volume was 252,400 tons, 5.12% lower compared with the same period last year. In 2018 and 2019, the cumulative export volume was 357,000 tons, 8.32% lower compared with the same period last year. According to the statistics of the U.S. Department of Commerce, in the first half of 2019, China's cotton clothing exported to the United States fell 3.7% year-on-year, and the average price dropped 2.3%. However, American import volume of Chinese clothing still increased 3.1% year-on-year, and the volume of chemical fiber clothing increased 6%.

From the table of the spot and futures and the table of the comparison of the two prices, the prices of cotton yarn futures have both increase and decrease, but the prices of spot basically remain stable and go down, and rise rarely. The fluctuations of cotton yarn prices are highly relevant to the downstream demands.

When cotton price rises slightly, yarn price con remain stable; While cotton price falls sharply, cotton yarn price also decreases. Orders and raw materials are still the dominant factors of yarn price, which also shows that cotton yarn futures are not mature enough to react with the spot. Cotton yarn specifications and qualities may lead to the impossibility of hedging. The trend of cotton yarn futures is basically based on CF. The exports of cotton yarn spot are weakening and the downstream prices are falling. Recently, the cotton has been warming, cotton yarn is expected to hold price and be shipped.

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