【 Cotton Information 】

1. On April 20, the quotation of China’s main port fell slightly. International cotton price index (SM) 98.40 cents/lb, down 0.85 cents/lb, reduced the general trade port delivery price of 16,602 yuan/ton (based on 1% tariff, exchange rate based on the central price of the Bank of China, the same below); International cotton price index (M) 96.51 cents/lb, down 0.78 cents/lb, discount general trade port delivery price 16287 yuan/ton.

2, April 20, the market divergence intensified, position continued to climb, Zheng cotton main in the former high near the shock, CF2309 contract opened 15150 yuan/ton, the end of the narrow shock up 20 points to close at 15175 yuan/ton. Spot price stable, maintain weak transaction, cotton period continued strong, the basis of the order price moved up to 14800-15000 yuan/ton. Downstream cotton yarn changes little, the transaction has become weak signs, textile enterprises on demand procurement, the mentality is more cautious. Overall, more information in the disk to get feedback, the follow-up demand prospects diverge, temporarily to the shock trend.

3, 20 domestic cotton spot market lint spot price is stable. Today, the basis difference is stable, some Xinjiang warehouse 31 pairs 28/ 29 corresponding to CF309 contract basis difference is 350-800 yuan/ton; Some Xinjiang cotton Inland warehouse 31 double 28/ double 29 corresponding to CF309 contract with impurity 3.0 within the basis difference of 500-1200 yuan/ton. Today’s cotton spot market cotton enterprises sales enthusiasm is better, the transaction price is stable, one price and point price resource volume transaction. At present, the yarn price of textile enterprises remains stable, and the immediate profit space of yarn mills is under pressure. Spot transaction within the basement price resources near a small amount of procurement. It is understood that at present, Xinjiang warehouse 21/31 double 28 or single 29, including miscellaneous within 3.1% of the delivery price is 14800-15800 yuan/ton. Some mainland cotton base difference and one price resources 31 pairs 28 or single 28/29 delivery price in 15500-16200 yuan/ton.

4. According to the feedback from farmers in Aksu, Kashgar, Korla and other places in Xinjiang, wechat notices have been received since mid-April: “2022 cotton target price subsidy starts to be collected, and the subsidy standard is 0.80 yuan/kg”. The statistical table will be released on April 18, 2023. It is expected that the first batch of subsidies will be issued and transferred to the account in late April. Some basic farmers, cooperatives and cotton processing enterprises said that although the distribution of the cotton target price subsidy in 2022 was delayed compared with the previous years, the current cotton spring planting peak in Xinjiang was issued in tandem with the Notice of the Ministry of Finance of the National Development and Reform Commission on Improving the Implementation Measures of the Cotton Target Price Policy, which gave Xinjiang farmers a “reassuring” message. It is conducive to the stability of cotton planting area in 2023, the improvement of farmers’ planting/management level, and the improvement of cotton industry quality and income in Xinjiang.

5, ICE cotton market overall closed down. The May contract settled down 131 points at 83.24 cents. The July contract settled down 118 points at 83.65 cents. The December contract settled down 71 points at 83.50 cents. Imported cotton prices followed futures lower, with the M-grade index quoted at 96.64 cents per pound, down 1.20 cents from the previous day. From the current situation of imported cotton cargo base differential quotation, the mainstream varieties of resources compared to the previous day did not see significant adjustment, the overall in nearly three years weak level. From the market feedback, in recent days after Zheng cotton futures board broke through five thousand one line, some traders lower imported cotton resource base, but downstream enterprises because of future orders full of uncertainty, the current wait-and-see mood continues, still maintain according to the purchase. It is reported that a small amount of yuan Brazil cotton base reported 1800 yuan/ton or so, but the actual transaction is still light.

【 Yarn Information 】

1. Viscose staple fiber market continued flat performance, the downstream cotton yarn shipment situation is not good, the market is not confident in the future market, but viscose factory early order delivery, and the overall inventory is low, temporarily adhere to the price, wait and see the market further situation. At present, the factory’s quotation is 13100-13500 yuan/ton, and the negotiated price of middle and high-end is around 13000-13300 yuan/ton.

2. Recently, the imported cotton yarn market has maintained just need to be delivered, the downstream proofing orders have been carried out, the progress of bulk goods follow-up is still slow, the spot price of cotton yarn is relatively stable, the local supply of imported CVC is tight, the subsequent market confidence is different, and the domestic replenishment is relatively cautious. Price: Today in Jiangsu and Zhejiang area imported Siro spinning quotation held steady, Ba yarn SiroC10S medium quality of 20800~21000 yuan/ton, slow delivery.

3, 20 cotton yarn futures continued to rise, cotton futures stable concussion. The transaction price of cotton yarn on the spot market remained stable, some combed varieties still had a slight increase, pure polyester yarn and rayon yarn with the price of raw materials fell slightly. As cotton prices continue to rise recently, textile companies tend to purchase raw materials cautiously. A Hubei spinning enterprises said that the recent dare not purchase cotton, spinning no profit, sales than 10 days ago to be worse, 32 comb high distribution price 23300 yuan/ton, 40 comb high distribution in 24500 yuan/ton.

4. At present, the opening probability of yarn mills in all regions is basically stable. The average start-up rate of large yarn mills in Xinjiang and Henan is about 85%, and the average start-up rate of small and medium-sized yarn mills is about 80%. Large mills in Jiangsu and Zhejiang, Shandong and Anhui along the Yangtze River start up at 80% on average, and small and medium-sized mills start up at 70%. The cotton mill currently has about 40-60 days of cotton in stock. In terms of price, C32S high distribution ring spinning 22800 yuan/ton (including tax, the same below), high distribution tight 23500 yuan/ton; C40S high tight 24800 yuan/ton, combing tight 27500 yuan/ton. Imported yarn line C10 Siro 21800 yuan/ton.

5. According to the feedback of cotton textile enterprises in Jiangsu, Shandong, Henan and other places, as the key point of Zheng cotton CF2309 contract broke 15,000 yuan/ton, the spot price and base price of cotton rose accordingly, except for the quotation supply of high-weight cotton yarn which was slightly tight over 40S and continued to increase the price (60S yarn performance was relatively strong). Prices of low and medium ring spinning and OE yarn for 32S and below fell slightly. At present, the overall spinning profit of cotton spinning enterprises is narrower than that of March, and some enterprises whose cotton yarn production accounts for a relatively high number of 40S and below even have no profit. According to a 70000 ingot spinning enterprise in Dezhou, Shandong Province, the inventory level of cotton yarn is relatively low (especially the cotton yarn with 40S and above basically no inventory), and there is no plan to replenish the stock of cotton, polyester staple fiber and other raw materials in large quantities in the short term. On the one hand, before the end of April, the enterprise cotton inventory maintained at 50-60 days, relatively sufficient; On the other hand, the price of cotton rose, and the spinning profit declined compared with February and March.

[Grey Fabric Printing and Dyeing Information]

1. Recently, the prices of polyester, cotton and viscose have increased, and the orders of grey fabric factories are sufficient, but most of the orders can only be completed in the middle and late May, and the subsequent orders have not landed yet. The shipment of pocket cloth is relatively smooth, and the stock of everyone is not large, and many orders are exported. It seems that we still have to go out to the market to get more orders. (Managing Zhang Ruibu – Zhou Zhuojun)

2. Recently, the overall market orders are not ideal. Domestic orders are coming to an end. Hemp orders are still relatively stable, and the development of new products of hemp blend is currently on the trend. Many people are asking the price to check the price, and the development of orders of cotton post-processing with added value is also increasing. (Management of Gong Chaobu – Fan Junhong)

3. Recently, the raw material end of the market is going up strongly, the yarn is going up strongly, but the market order acceptance ability is very weak, some yarns have room to talk about the price reduction, the recent export orders have not improved, the price of the internal volume leads to the transaction price has been reduced again and again, the domestic market is relatively stable, but the grey fabric demand is also weakening, the sustainability of the later order to be tested! (Managing Bowen Department – Liu Erlai)

4. Recently, Cao Dewang accepted the interview of “Junptalk” program, when talking about the reasons for the sharp decline in foreign trade orders, he believed that it was not the US government to withdraw your order, but the market to withdraw the order, is the market behavior. In the United States, inflation is very serious and labor shortage is severe. Combined with these two factors, the United States hopes to find cheaper markets in purchasing, such as Vietnam and other Southeast Asian countries to place orders. On the surface, the trade decoupling between China and the United States is actually a market behavior. Speaking of his expectations for the future, Mr Cao said it would be “a very long winter”.