1. Domestic spot prices fell and futures prices rose. This week, the national cotton market monitoring system yarn index CNCotton C32S yarn index averaged 18486 yuan/ton, down 62 yuan/ton from last week, and the yarn-cotton price difference was 6,160 yuan/ton, down 156 yuan from last week. Yuan/ton; the average settlement price of cotton yarn futures was 19,863 Yuan/ton, which was an increase of 179 Yuan/ton from last week and 1377 Yuan/ton higher than the spot price. The spread was 241 Yuan/ton wider than last week. 2. International yarn prices have remained stable (1) For 32 cotton yarns this week, the average pick-up price at Indian ports was 18,300 yuan/ton, which was the same as last week. The price difference between China and India [1] [1] decreased by 62 yuan/ton compared to last week. 186 yuan/ton; the average pick-up price at Vietnamese ports was 18,390 yuan/ton, the same as last week, and the price difference between China and Vietnam narrowed by 62 yuan/ton to 96 yuan/ton from last week. (2) The average pick-up price of 21 cotton yarns at Indian ports this week was 17,340 yuan/ton, which was the same as last week. The price gap between China and India narrowed by 140 yuan/ton to -190 yuan/ton from last week; the average pick-up price at Pakistan ports was 17,220 yuan/ton. Ton, the same as last week, the price gap between China and Pakistan narrowed by 140 yuan/ton to -70 yuan/ton compared with last week. (3) 10 air-jet spinning This week, the average pick-up price at Indian ports was 12,330 yuan/ton, which was the same as last week, and the price difference between China and India narrowed by 14 yuan/ton to -525 yuan/ton from last week. 3. The price of chemical fiber went up and down. This week, the national cotton market monitoring system chemical fiber index CNCotton PS (1.4D direct-spun polyester short) average price was 5434 yuan/ton, down 16 yuan/ton from last week, and the cotton-polyester price difference was compared with last week. Expanded 110 yuan/ton to 6892 yuan/ton; CNCotton VS (mainstream viscose staple fiber) average price was 8460 yuan/ton, up 280 yuan/ton from last week, and cotton viscose price difference narrowed by 186 yuan/ton to 3866 yuan compared with last week /Ton. Four. Outlook for the future In the past week, domestic yarn prices have not stopped falling, cotton yarn futures prices are hovering near the 20,000 yuan/ton mark, and international yarn prices have shown a stabilizing trend. Judging from the downstream market, the market differentiation is still serious. Some companies have increased orders and are preparing for production of 'Golden Nine and Silver TenNext, the operating profits of textile enterprises may be squeezed again. According to data from the National Cotton Market Monitoring System, since May 2020, the CNCotton B index, which represents the average transaction price of 3128B grade lint in the Mainland, has increased month-on-month. Although the decline in C32S cotton yarn prices has narrowed, it has not changed month-on-month since 2020. Downtrend. In addition, since 2020, the price difference between yarn and cotton has increased first and then decreased, and is currently the lowest since this year, around 6,100 yuan/ton. (See the table below and Figure 1) From the latest consumer goods retail situation released by the National Bureau of Statistics, from January to July 2020, the total retail sales of consumer goods was 20.45 trillion yuan, a year-on-year decrease of 9.9%, and the rate of decline was narrower than that from January to June. 1.5 percentage points, showing the gradual recovery of the vitality of market entities. Among them, from the perspective of retail sales of apparel goods, although the retail sales in July fell from the previous month, retail sales have gradually recovered since March, especially the data after May is not much different from the past two years (see figure 2). In summary, although the production and operation conditions of enterprises have been differentiated and profits have been squeezed again, with the gradual recovery of China’s domestic demand market and a small number of foreign trade orders, market participants’ confidence has increased, coupled with the stabilization of foreign yarn prices. It indicates that the market atmosphere is improving, or to support the domestic market. In the near future, domestic yarn prices are expected to stop falling. However, before the US general election, there are many uncertain factors in the market and still need to be closely monitored. [1] The price difference in the article is the difference between the domestic yarn price and the foreign yarn price. Article Keywords: Cotton Yarn
