Weekly Market Dynamics (August 26, 2019 -9 1)

When the price of raw materials continued to decline, the price of cotton and polyester staple fiber increased more sharply than that of the previous week, and the price of gauze products remained weak.

First, cotton prices have dropped sharply, and domestic and foreign cotton prices have narrowed.

The Sino US trade frictions were once again "unyielding." China responded forcefully to the volatility and pressure imposed by the US side in the negotiations. The macroeconomic environment and trade prospects are still full of uncertainty. Market wait-and-see sentiment is still high, downstream procurement is mainly rigid demand, seasonal supply is coming, cotton prices downward pressure.

In the week, the average price of domestic 3128 grade cotton spot was 12646 yuan / ton, which was 367 yuan / ton lower than the previous week, and the settlement price of Zhengzhou cotton futures contract was 12442 yuan / ton, which was 354 yuan / ton lower than the previous week. In the international arena, the average price of CotlookA index was 69.67 cents / pound during the week, which was 1.02 cents lower than the previous week, and the settlement price of New York cotton futures contract was 58.33 cents / pound, a decrease of 0.74 cents / pound compared with the previous week.

In the week, the average price difference between domestic and foreign cotton prices was 793 yuan / ton, down 196 yuan / ton compared with the previous week.

　　 Cotton price trend at home and abroad since 2018

Two, the price of chemical fiber staple fiber has dropped further, and the price of PET staple has increased.

When the viscose staple fiber production and marketing increased, but the price of high-end viscose decreased sharply, the middle and low end of the viscose formation of a certain suppression, prices continue to decline. The price of PET staple was lowered before the week and remained stable after the week. The average price of viscose staple fiber was 11014 yuan / ton, compared with the previous week, 122 yuan / ton, and the average price of polyester staple fiber was 7147 yuan / ton, compared with the previous week, it dropped 129 yuan / ton.

　　 Price trend of chemical fiber staple since 2018

Three, the price of gauze remains weak.

Affected by the escalation of trade frictions between China and the United States, cotton prices have dropped sharply. The enthusiasm of textile enterprises to purchase is not high, wait-and-see sentiment is strong, the downstream market is once again turning pale, prices are falling, especially high count yarn, and there are more losses. In the week, the average price of 32 domestic cotton combed yarn was 20378 yuan / ton, down 145 yuan / ton compared with the previous week.

When the imported cotton yarn market is still trading in general and the price is weak, the price of 32 Cotton Combed Yarns in India and the domestic 32 pure cotton combed yarn are upside down again. During the week, the average price of 32 Cotton Combed Yarns in India was 20490 yuan / ton, which was 10 yuan / ton lower than the previous week's average price, higher than the average price of 32 cotton combed yarn in China, 112 yuan / ton, and the average price of 32 cotton pure cotton carpets in Vietnam was 19980 yuan / ton, which was 110 yuan / ton lower than the previous week, and the average price difference between domestic and 32 cotton pure cotton combed yarn was 398 yuan / ton, which was reduced by 35 yuan / ton compared with the previous week.

Near the traditional textile peak season, orders for local textile mills increased somewhat, but the signs of overall improvement in the market were not obvious, the recovery was slow, the shipment speed was slow, and prices were stable and weak. In the week, the average price of pure cotton grey fabric (32*32 130*70 2/1 47 "twill) was 5.14 yuan / m, compared with the previous week, the price dropped by 0.03 yuan / meter.

　　 Price chart of cotton yarn at home and abroad since 2018

　　 Price chart of gauze products since 2018

Four, outlook for the future

Since September 1st, about $110 billion of China's US exports will be subject to a 15% tariff, including clothing and shoes. Entering the September, new cotton picking gradually began, the market is expected to open the scale price lower than last year. As new cotton comes on the market and market supply pressure increases further, it is expected that cotton prices will continue to be under pressure and vulnerable to operation in the near future. There are fewer new orders downstream, and signs of market improvement are not obvious. Gauze prices remain weak.