SunSirs: Inventory Decline, Chinese Cotton Yarn Market Stabilizes

Price quotation: The price of 32 cotton yarns is around 25,700 yuan/ton.

Analysis: The cotton yarn market has improved compared with before the holiday, and the mentality of textile enterprises has improved. The cotton yarn inventory of spinning mills continued to decline, and the load remained at the level of last week. The grey cloth end was still weak, some orders increased, and the overall delivery was general. In terms of imported yarn, the transaction situation of imported yarn this week has improved compared with last week. The port inventory of imported yarn has declined slightly, and the price has remained stable. There is no arbitrage opportunity for the price difference between domestic and foreign prices. Inquiry and delivery of imported combed yarn in various light textile markets in coastal areas is slow, and both buyers and sellers are not in a high mood. The spread of the epidemic in India and its neighboring countries has caused some foreign trade orders to return to China.

Macro aspect: my country's textile and apparel exports amounted to US$65.11 billion, a year-on-year increase of 44% and an increase of 15.6% over the same period in 2019. Among the main export products, clothing exports in the first quarter reached 33.3 billion U.S. dollars, a year-on-year increase of 47.7%. According to the survey data of the China National Textile and Apparel Council, the prosperity index of my country's textile industry in the first quarter was 57.1. It indicates that the general trend of the textile industry's production and operation and market expectations is improving, and the enterprise's development confidence has increased.

Upstream and downstream: This week, the domestic cotton spot market is stable. Recently, cotton in the north and south of Xinjiang has entered the stage of emergence one after another. The strong winds and cold waves in various places have demanded reseeding or replanting in several places. The western United States continued to suffer from drought, and the range of drought gradually expanded and covered the main cotton area of ​​the southwestern state of Texas. Cotton fell continuously during the ICE period. The epidemic in India is raging, and the impact of planting is not yet known, but for the domestic textile industry, foreign orders are expected to return. my country's grey cloth market orders have improved compared to before the holiday, and follow-up attention will be paid to the continued order.

In general, the cotton yarn market has improved, the upstream raw materials support is strong, the cotton yarn inventory decline of spinning enterprises has accelerated, and the cotton yarn spot price trend is optimistic. It is expected that the market will continue to rise in the future.

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