The price difference between yarn and cotton is narrowing month-on-month. Enterprises enter 'hibernation' ahead of schedule (March 30-April 3, 2020)

1. The domestic spot yarn prices and grey cloth prices continued to decline. This week, the domestic spot yarn prices continued to decline from a month-on-month basis and set a new low for the year. The national cotton market monitoring system yarn index CNCotton C32S average price of 19489 yuan / ton, down 412 yuan / ton from last week, yarn and cotton price difference of 8,291 yuan / ton, 303 yuan / ton less than last week; the average price of cotton yarn futures settlement is 17,908 Yuan/ton, an increase of 78 Yuan/ton from last week, lower than the spot price of 1,581 Yuan/ton, and the spread of 490 Yuan/ton from last week. The data shows that the average price of a more representative cotton grey cloth 63'40*40 133*72 following the first drop in the previous year, the average price this week continued to fall by 0.04 yuan/meter to 8.22 yuan/meter. 　　 Many textile companies currently Due to insufficient orders, the Ching Ming Festival holiday was extended from 1 day in the previous year to 3 days this year, and the rotation system was implemented from the department in April, and the production line employees also began to arrange breaks on weekends. Some companies have longer holidays, and even do not clearly start work. Date. The degree of market indifference can be seen. Before the turning point of the foreign epidemic situation, the market bears a strong atmosphere. 　　 2. International cotton yarn prices have expanded to around 200 yuan/ton from the previous month (1) 32 cotton yarns This week, the average pick-up price of Indian ports 20174 yuan/ton, a decrease of 206 yuan/ton from last week, the price difference between China and India [1] [1] compared with last week’s reduction of 206 yuan/ton to -685 yuan/ton; the average pick-up price at Vietnamese ports is 19,863 yuan/ton, which is higher This week, the price gap between China and Vietnam narrowed by 243 yuan/ton to -374 yuan/ton from last week. The average pick-up price of 21 cotton yarns this week was 19,320 yuan/ton, down 198 yuan/ton from last week. Ton, the price difference between China and India narrowed from 192 yuan/ton to 230 yuan/ton from last week; the average pick-up price at Pakistan’s ports was 18,882 yuan/ton, down 214 yuan/ton from last week, and the price difference between China and Pakistan narrowed by 176 yuan/ton from last week to 668 yuan / ton. 　　 (3) 10 yarn spinning This week, the average pick-up price at Indian ports was 12,932 yuan / ton, down 204 yuan / ton from last week, and the price difference between China and India narrowed by 136 yuan / ton to -351 yuan from last week. /Ton.　　According to the reports of cotton yarn trading companies in Guangdong, Jiangsu, Zhejiang and other places, in the past week, the inquiry and sales of imported cotton yarn have continued to be sluggish, with only sporadic transactions, especially Indian cotton yarn. The main reasons are: first, since March 25, India’s nationwide blockade for 21 days, production, trade, and port shipments are all 'shut down'. Industry insiders predict that with the continued spread of the new crown epidemic in Southeast Asia and other countries, it is unlikely that India’s closure measures will be cancelled in April and April, and companies dare not dare. Take risks to purchase Indian cotton yarn; second, because of the higher cost, Indian cotton yarn is less cost-effective than Vietnam and Pakistan. 　　 3. Chemical fiber prices continue to fall sharply and the cotton spot price gap narrows this week, the national cotton market monitoring system chemical fiber index, CNCotton PS (1.4 D direct-spun polyester staple) average price is 5,422 yuan/ton, down 314 yuan/ton from last week, cotton-polyester price gap widens from last week to 205 yuan/ton to 5776 yuan/ton; CNCotton VS (mainstream viscose staple fiber) average price 9030 yuan/ton, a decrease of 250 yuan/ton from last week, and the price difference of cotton viscose widened by 141 yuan/ton to 2168 yuan/ton from last week. 　　4. Outlook (1) Negative factors 1. The foreign epidemic situation continues to ferment and the foreign trade situation is extremely severe. As the foreign epidemic continues to ferment, more and more countries have declared a 'state of emergency' or 'closed country'. Production, trade, and port shipments have all been 'suspended'. The decrease in orders has made China's foreign trade situation abnormal. It is severe, especially in the Yangtze River Delta, where textile exports account for nearly 60% of the country’s total. Recently, companies in Jiangsu and Zhejiang have begun to take turns to reduce production, reduce employees and reduce wages. 2. Tomb-sweeping holiday is longer than in previous years. Enterprises have entered 'hibernation' again. The epidemic has led to an accelerated economic downturn. While foreign trade orders have been cancelled, domestic sales orders are also very limited. Many textile companies have to extend the Tomb-sweeping holiday because they have no orders to do. In previous years, the holiday of 1 day was extended to 3 days. Some holiday notices did not specify the specific working date. The Tomb-sweeping holiday may become a 'watershed' in the market. Enterprises have not yet felt the 'warmth of spring' this year, and the 'winter's bitterness' is lingering, and employment issues have also followed.　　(2) bullish factors 　　 targeted RRR cuts incentivize entities to help revitalize small and medium-sized enterprises. On April 3, the People’s Bank of China decided to lower the deposit reserve ratio by 1 percentage point for rural credit cooperatives, rural commercial banks, rural cooperative banks, rural banks, and urban commercial banks operating only in provincial administrative regions. It was implemented in two installments on the 15th and May 15th, with a decrease of 0.5% each time, releasing a total of about 400 billion yuan in long-term funds. In addition, the People's Bank of China decided to lower the interest rate on excess deposit reserves of financial institutions in the central bank from 0.72% to 0.35% from April 7.　　 This policy aims to support the resumption of work and production of enterprises, stabilize the SMEs that have suffered the most from the epidemic, promote the reduction of the real interest rate of loans to small and micro enterprises and private enterprises, drive down the financing costs of the real economy, and support the development of the real economy. This policy is good for small and medium-sized textile enterprises that are currently struggling. However, before the turning point of the foreign epidemic situation appears, the market is still hard to be optimistic. It is also understood that since this year, most of the domestic small and medium-sized textile enterprises have not received bank loans except for the production of epidemic prevention products and materials.　　[1] The price difference in the article is the difference between the price of the middle yarn and the price of the outer yarn. Article Keywords: 　 Yarn Cotton Price