Trade Worries Add To Cotton And Yarn Price Declines

Last week (5-9 August), the United States increased taxes on US $300 billion in Chinese products and Trump hinted that the September Sino US economic and trade consultations could be canceled and other events. Market psychology continued to bear pressure and yarn futures continued to fall. But the yarn market is different because of different regions, the starting rate of enterprises and the view of the post market.

Raw materials for cotton. ICE futures reflect the previous day's gains. Zheng cotton futures continued to fall. As of August 9th, Zheng cotton main contract closed at 12175 yuan / ton, compared with the previous Friday (August 2nd) fell 495 yuan / ton; the cotton reserve turnover rate continued to decline, the spot market situation weak finishing. At present, the "double 29" hand picked cotton weight is quoted at 13650-13750 yuan / ton in the southern Xinjiang warehouse. The "double 28" hand picked cotton weight is quoted at 13450-13550 yuan / ton, and the "double 29" machine pick up cotton price is 13500-13600 yuan / ton, which is reduced by 300-350 yuan / ton compared with the previous week. With the cotton entering the Bolling stage, it is the critical period for increasing boll weight, raising quality and promoting high yield of cotton. Meanwhile, the cotton bollworm is in the emergence stage of the two generation of adults. In addition, the Yangtze River Basin and the the Yellow River River Basin in the mainland are affected by Typhoon "Li Qi Ma", which is harmful to cotton production in some areas.

Other raw materials. Polyester staple market continued to slide. In August 11th, the direct spinning polyester and short price of 1.4D*38mm in Jiangsu and Zhejiang provinces was 7550 yuan / ton, down 150 yuan / ton compared with August 2nd, the sales volume was generally small, and the small viscose staple fiber reported in Jilu area 1.5D*38mm was 11700 yuan / ton, 1.2D*38mm viscose staple fiber reported 11600 yuan / ton, compared with August 2nd, it dropped 200 yuan / ton, and the actual deal could be discussed.

Pure cotton yarn. According to the textile factories in Jiangsu and Zhejiang, at present, the operating rate of enterprises is basically maintained at 100%. Under the background of the increase of cotton yarn stock, individual enterprises even keep down about 80% in order to reduce inventory and protect cash flow. A factory official said that the lowest price of Zheng cotton fell to 12075 yuan / ton, low innovation, and orders were also affected, but cotton prices continued to decline in limited space, not too much to watch the market. The price of all cotton yarn for 21S high distribution ring spinning knitted fabric is 22800 yuan / ton in a factory in Jiangsu, and the price of 32S cotton yarn is 23800 yuan / ton, and the price is stable.

Other yarns. Polyester yarn continued to decline slightly. In August 11th, the price of 32S polyester yarn in a factory in Shandong was 16200 yuan / ton (including tax ex factory price), which was 100 yuan / ton lower than that in August 2nd. The sales volume is still good, the volume is much higher, and the turnover is slightly favorable. The price of 30S cotton yarn in a factory in Henan is 17200 yuan / ton, which is 100 yuan / ton lower than that in August 2nd, and sales volume is generally large.

Imported yarn. According to traders feedback, the recent import yarn stock increased, but the price quotations of clear cotton yarn is obviously more "anti falling". As of August 11th, the external yarn inventory of the port was still at a high level of 125 thousand tons.