Does The Sino US Trade Situation Deteriorate?

Affected by the deterioration of the Sino US trade situation, market pessimism shrouded, and domestic yarn prices steadily declined.

Many industries are worried that the price of yarn will come down in the near future.

The specific reasons are as follows:

First, the external cotton plummeted and the cost of outer yarn dropped.

Since May, ICE cotton has fluctuated drastically, dropping from 77 cents / pound to 65 cents / pound (64.50 cents / pound).

Export enterprises and international cotton traders generally believe that it is very difficult to get back to the high point of 75 cents / pound in short term ICE cotton.

Affected by the ICE futures slump, recently, US cotton C/A, EMOT/MOT and SM Brazil cotton, SM West Africa cotton, SM cotton cotton spot CNF (FOB) quotations were lowered by 8.5-10 cents / pound (the higher grade, the better quality lint adjustment slightly), while the India cotton S-6 1-5/32, S-6, and so on quotation fell more than 10 cents / pound, more than the cotton and other cotton producing areas.

The drop in external cotton will greatly reduce the cost of foreign yarn, thus affecting the domestic yarn market.

Two, China's main external yarn stock is at a record high.

According to traders, late May, Qingdao, Ningbo, Guangzhou and other ports outside the yarn stock is still relatively large, good location and fast delivery of the bonded warehouse not only "yarn full", and warehousing costs plan to increase.

According to some large and medium-sized traders, the total yarn arrivals in April reached 20-22 tons, an increase of more than 10% over the same period, and sales of cotton yarn could be described as "pressure mountain".

Recently, the price difference between internal and external yarn is 200-300 yuan / ton, and traders are going to inventory.

In addition, Pakistan cotton yarn tariff free entry into China will also have a great impact on domestic yarn. The original tariff is 3.5%, and the price cut after tax is several hundred yuan, which is very competitive in the domestic market.

Three, domestic cotton prices plummeted, and domestic yarn cost dropped synchronously.

5 since the middle of last month, Zheng cotton has fallen sharply, and the CF1909 contract has fallen to 13765 yuan / ton. Although the mood of the market has recovered, Zheng cotton has rebounded, but from the overall market trend, the rebound is not enough.

In addition, this week, the reserve price of the cotton reserve was 13893 yuan / ton, which was 579 yuan / ton lower than the previous week.

With the sharp decline in the cost of domestic yarn, and in the background of the downturn of downstream consumption, the possibility of textile enterprises going to stock reduction will increase.

Four cotton yarn futures plunged sharply.

Last week, cotton yarn futures plunged, and the CY1909 contract fell from 24500 yuan / ton to the current 22100 yuan / ton.

When futures fall or fall, the spot price is difficult to be independent, which will cause great pressure on the production and sales of enterprises.

To sum up, the recent yarn market has been superimposed on the negative side.

Although the enterprises are very expensive because of the high inventory costs, the domestic yarn is stable and only a few individual varieties have fallen. But how long can the price of the company support?

This calls for a question mark.

Therefore, as an enterprise, the first thing to do is to grasp the general trend of the market and follow the trend.