Cost Reduction, Demand Decline, Can It Be Stabilized? Why Does The Polyester Cotton Yarn Not Rise Or Fall?

Market brief

In December 20th, China Cotton Reserve Management Co., Ltd. planned to purchase 7000 tons of Xinjiang cotton and 0 tons of actual business. In from December 2nd to 19th, the total turnover of Xinjiang cotton reached 35320 tons, of which 3160 tons were accumulated in the Xinjiang warehouse, and 32160 tons were accumulated in the mainland warehouse, and 51 enterprises were competing for sale.

Will impact 13500 yuan / ton, the domestic lint spot market is still weak, the purchase and sale is still in a stalemate, the terminal demand is gradually weakening, the new cotton middle and high grade cotton price difference is bigger, but the Xinjiang cotton ginning factory's enthusiasm for selling cotton is slightly improved, and the new cotton sales progress is slow. Most of the enterprises in the new cotton trade rely on traders to purchase, although some of the resources are worth more than 13500 yuan / ton, but the transaction is weak, but the transaction is weak, and the upcoming purchase of the Spring Festival market, the downstream procurement tends to be more cautious, and the spot price volatility of cotton yarn falls down, the volume of cotton futures will fall down, the volume of cotton will decline in the future, the demand for the whole cotton market will continue to decline, the demand will not flourish, the cotton market in short term will not be prosperous, the cotton market will not be good enough, and the cotton price trend will be stable. Zheng cotton main narrow range warmer consolidation, short-term target position is still

The price of acrylonitrile is weak, and the market is approaching. There are still many low prices in the market. Most manufacturers are expecting a significant price for manufacturers. The market is waiting for guidance from factories. In the short term, the Anqing maintenance device is expected to restart, and the market will see that the air is not decreasing. Traders' confidence is limited. It is expected that the short-term price of acrylonitrile will remain weak. Acrylic fiber prices continue to be stable, terminal demand changes are limited, downstream factory procurement enthusiasm is not high, acrylic fiber Market wait-and-see raw materials acrylonitrile new guidelines, the recent acrylic fiber cost support sustained, demand performance in general, acrylic fiber offer dilemma, short term factory has no new news guidelines, it is expected that acrylic fiber prices will remain stable.

By the end of December 18th, the total output of new cotton in the country was 4 million 412 thousand and 700 tons, of which 4 million 313 thousand and 300 tons were processed by Xinjiang cotton, and 3 million 971 thousand tons of lint were tested nationwide, of which 3 million 872 thousand and 900 tons of Xinjiang cotton were tested. As of December 20th, the number of cotton warehouses in China increased by 25256, increasing by 539, and 4315 effective forecasts. The total amount of warehouse receipts is 29571*40, which is equivalent to 1 million 182 thousand and 840 tons of stock.

To further understand China's cotton planting intentions in 2020, the national cotton market monitoring system launched a nationwide survey on cotton planting intentions in mid November. The sample involves 15 provinces (autonomous regions), 50 cotton planting counties (cities, farms), and 1895 designated cotton planting information contact households. The survey showed that in 2020, China's cotton planting area was 45 million 875 thousand mu, a decrease of 2 million 68 thousand mu, down 4.3%. According to the survey, the cotton planting area in the Yellow River basin is 6 million 348 thousand mu, down 8.2% year on year. The cotton planting area in the middle and lower reaches of the Yangtze River is about 3 million 947 thousand mu, down 19.5% from the same period last year. The cotton planting area in northwest inland cotton area is 35 million 205 thousand mu, down 1.3% compared with the same period last year. Among them, Xinjiang intends to plant cotton area of 34 million 927 thousand mu, down 1.1% compared to the same period.

In December 20th, 2019 China Textile civil military dual use technology development conference was held in Beijing capital hotel. More than 500 people attended the conference. The conference invited academicians of the Chinese Academy of engineering, experts from military universities, military industry groups, quartermaster units and research institutes. Professors of textile colleges and universities interpreted the application and development of fiber materials, functional textiles and intelligent wearable in logistics support, operations, training and military equipment, and military engineering. It is of great significance for the textile industry to have an in-depth understanding of the latest progress in science and technology, quartermaster requirements, and determine the future research directions of dual-use technology. The "2019 China civil service dual use technology and product catalog" and "2019 China Textile Industry Federation's textile industry dual-use technological innovation achievements" were released at the meeting. In addition, the product exhibition area, which is carefully set up in the conference, has focused on the emergence of a large number of new products and technologies in the development of textile, civil and dual-use technology, including fiber raw materials, emergency protection, aerospace, quartermaster supplies, military equipment, geosynthetics and other categories.

Wei Qiao textile (02698.HK) issued a notice, such as the reasons for the company's previous earnings warning notice, although the group's electricity business maintained stable operation in the first half of 2019, but affected by the unfavorable factors such as trade protectionism warming, the global economic growth was weak and the market consumption weakened, resulting in a weak demand for China's cotton textile market and a pressure on the entire textile industry, thus negatively affecting the gross profit margin and gross margin of the group. In the second half of 2019, although the power business of the group continued to be stable, the downward trend of cotton prices was generally affected by the continuous decline of cotton prices. The demand for cotton textile products continued to slump, leading to further pressure on the sale price of cotton textile products, thereby reducing the gross profit and gross profit margin of the group cotton textile products further. The net profit of the second half of 2019 is expected to decline further than the first half of 2019.

Recently, two days of Huaian textile industry "carnation Cup" loafer (towel) vocational skills competition held in Huaian Jiangsu carnation Manufacturing Co., Ltd., 24 textile towel workers from 6 textile companies in the city conducted a comparative test. After intense competition, Zhao Li, Li Juan and Luo Jianping of Jiangsu carnation Textile Technology Co., Ltd. won the first prize, second and third respectively. The Jiangsu carnation Textile Technology Co., Ltd., Xinjie Weaving Co., Ltd. and Jia De Textile Co., Ltd. won the "group winning" award. The top three players in the competition also won the title of "Huaian technical experts" awarded by the Municipal Bureau of human resources and social security.

Recently, Ganzhou, Jiangxi Province issued the "support and promotion plan of Ganzhou shoes and clothing brand". It proposed to speed up and strengthen the local enterprises of Ganzhou shoes and clothing, promote the high quality development of Ganzhou and Fujian textile and garment industry, and strive to achieve the goal of cultivating 100 billion yuan industrial clusters on schedule. The plan puts forward 13 refinement measures from 4 aspects: encouraging local brand selection, promoting exhibition activities, enriching exhibition platform and launching brand promotion action. According to the plan, Ganzhou will guide local trade unions and non-public economic organizations to choose local clothing brands, and assist eligible textile and garment enterprises to declare them into municipal and county government procurement catalogues. At the same time, the plan proposes that the relevant traders (associations) be encouraged to organize textile and garment fairs regularly, and actively organize brand shoe and garment enterprises to participate in the professional exhibitions at home and abroad, such as the Canton Fair (spring and Autumn) and the Shanghai fashion show, and guide enterprises to strengthen exchanges and cooperation with various new media and professional Internet portal platforms, and strengthen the promotion on line and under the line. The plan proposes that enterprises should be encouraged to create brands, guide enterprises to create their own brands, encourage the leading enterprises of shoes and clothing to declare the mayor's quality award and the "three products" of the provincial consumer goods industry (increase varieties, quality and brand), and guide enterprises to register trademarks and apply for patents.

Shandong Ming Sheng Textile Co., Ltd., China Textile Machinery Group Jingwei Textile Machinery Limited by Share Ltd 300 thousand ingot intelligent spinning project cooperation agreement was signed in Beijing in December 16th, marking an important step for the 1 million sides to cooperate in the construction of the intelligent spinning industry park. The signing of the 300 thousand intelligent spinning project cooperation agreement is the first phase project of the 1 million spindles intelligent spinning industrial park. The first 100 thousand spindles intelligent spinning project started construction in October, and plans to be put into operation at the end of December 2020. China Textile Machinery Group Jingwei Textile Machinery Limited by Share Ltd will provide equipment and financial support in the construction and operation of the industrial park project. Ming Sheng 1 million intelligent spinning industry park project covers an area of 1200 mu, with a total investment of 5 billion yuan, an annual output of 130 thousand tons of yarn, annual sales income of 3 billion 300 million yuan, an increase of 450 million yuan in profits and taxes, and the placement of more than 1500 people.

Recently, Binzhou and Huimin County passed the re examination of the China Textile Industry Federation again, and won the honorary title of "China textile industry base city" and "China rope net name city" respectively. Binzhou is an important textile industrial cluster area in China. It has been awarded the title of "national textile industrial base city", "the national textile industry cluster area of 100 billion output value", "the demonstration area of China's household textile industry", "the national textile industry innovation demonstration group" and "the leading zone of world class domestic textile industrial cluster". The textile industry cluster in Binzhou has gradually developed and expanded, forming a more complete industrial system of cotton spinning, dyeing and finishing, home textiles, carpets, clothing and accessories, chemical fiber and other categories. Up to now, there are nearly 500 textile and textile enterprises in the whole city, of which 178 are over scale enterprises, and 30 are employed. The main production capacity of textile products showed a continuous growth trend, processing 1 million 500 thousand tons of raw cotton per year, 11 million spindles of spinning, 3 billion meters of cloth and 20 million garments.

Recently, the Ministry of Commerce and ICBC issued the notice on organizing the recommendation of key cooperation projects in the supply chain area, saying that the innovation and application of supply chain should be accelerated. The circular proposes that in the key areas of cooperation, the integration of manufacturing and services should be promoted. Combined with the local leading industries, we need to promote the upgrading of household appliances, automobiles, electronics, textiles and other related industries, and build an intelligent manufacturing supply chain collaboration platform with personalized demand and flexible production, so as to improve the quality of products and services. The notice specifies the procedures for determining the project: first, provincial recommendation. The annual directory of key cooperation projects in each province (region or city) is determined before March 31st every year, and the number of projects in principle is not more than 20. Two is the bank's unified lending. ICBC selects the eligible supply chain projects from the annual Catalogue of key cooperation projects in the supply chain area to provide comprehensive financial services. In the process of handling loans, ICBC provides green channels for recommendation projects and supports them in accordance with relevant policies.

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