Weekly Market Observation (July 13 - July 19, 2020)

　　 Raw material end: Cotton price changed from up to down, chemical fiber staple fiber price continued to fall, viscose price fell more, polyester price decline slowed down;

　　 Product side: In the off-season, the market is relatively cold and the price is weak.

　　       Cotton: During the week, European and American stock markets showed mixed ups and downs, the US dollar index fell all the way, the main contract of American cotton futures fell, the spot price index fell, and the decline of futures was higher than that of spot. Domestic, Zheng cotton futures fell, cotton spot prices basically stable, spot trading situation is general. Recently, the epidemic situation in Xinjiang has rebounded and the control has been tightened. The market is worried about the transportation efficiency of cotton out of Xinjiang, especially the automobile transportation.

　　 Chemical fiber staple fiber: The market of viscose staple fiber remained weak and stable, with little change in the market. The downstream demand was still weak and there was a price depression. The price of viscose staple fiber decreased by 160 yuan / T in the week, higher than that of the previous week. In terms of polyester staple fiber, the polyester market is mainly volatile, and the downstream cotton spinning enterprises are not willing to purchase. However, due to the relatively strong performance of crude oil price, the price of polyester staple fiber did not drop significantly during the week, with a cumulative decrease of 30 yuan / ton.

　　       Cotton yarn: During the week, the market did not change significantly, the inquiry slightly increased compared with the previous period, but the actual orders were less. As the improvement of the foreign trade market is not obvious, the demand for high-end and high-density products is relatively low, and the sales of conventional products are relatively good. When the inventory level of cotton spinning enterprises continued to rise, due to the shortage of orders, some enterprises producing high count yarn reduced production, and the overall startup situation of the industry slightly decreased. In terms of imported yarn, the market trading is light and the transaction is general. The international market price maintains the early stage, the domestic market quotation reduces. In that week, the price of 32 cotton combed yarn in India was 173 yuan / ton lower than that of domestic cotton yarn, while that of Vietnam was 223 yuan / t lower than that of domestic cotton yarn.

　　 grey: In that week, the phenomenon of insufficient orders in grey fabric market was more common, and the inquiry in foreign trade market increased compared with the previous period, but the actual order was not issued, and the inventory of weaving factory was continuously accumulated. The sales of conventional Coarse Count products are still good, but there are many price depressions, and the operating pressure of weaving mills is greater.

Future prospects

On July 18, G20 finance ministers and central bank governors held a video conference, promising to continue to adopt all available policy tools to support the global economic recovery. Recently, China's economic data for the first half of the year, although the first half of GDP fell by 1.6%, but by quarter, the first quarter fell by 6.8%; the second quarter increased by 3.2%; from a month on month basis, the second quarter increased by 11.5%. The added value of industries above Designated Size in China decreased by 1.3% year-on-year, of which the first quarter decreased by 8.4% and the second quarter increased by 4.4%. It can be seen that in the first half of the year, China's economy gradually overcame the adverse impact of the impact of the epidemic and achieved gradual recovery. At present, the market is in the traditional textile off-season, I believe that with the further recovery of the domestic economy and the advent of the traditional textile peak season, the downstream market will improve.