This Week The Yarn Market Turnover Atmosphere Has Declined, The Overall Demand Is Not Strong, The Price Is Weak.

According to the Worldometer world real-time statistics, as of May 22, 2020 around 2:45 Beijing time, 5194210 cases were diagnosed globally, and 334621 cases died, including 1620902 cases in the United States and 96354 deaths.

Overseas, according to the China Textile Import and export chamber, since May, European epidemic control measures have been gradually relaxed, and many countries have resumed work. At present, retailers are showing signs of gradual recovery, but the latest data show that the decline and stagnation of the market will continue. According to the survey of Italy Fashion Industry Federation, Italy's fashion and textile industry lost more than 3 billion 500 million euros in the first quarter and lost about 9 billion euros in the whole year. The latest EU data on imports from 27 countries were released to China in March. In March, the European Union imported 186 thousand tons of Chinese textile and apparel, down 26.4% from the same period last year, down by 39% compared to the same period. In the 1-3 month, the EU 27 total imports of Chinese textile and apparel were 841 thousand tons, down 8.6% from the same period last year. From the point of view of the amount, in March, the EU imported 27 textile and apparel 1 billion 910 million euros, down 13.8% from the same period last year, a decrease of 21.3% compared to the same period, and the total import volume in 1-3 months was 7 billion 540 million euros, down 8.4% compared to the same period.

Domestic situation: upstream: Cotton spot price rises and falls later this week, and the trading atmosphere is weak before strong. Viscose staple fiber market is stable, but it has dropped from last week, and the current mainstream price is 8800-9200 yuan / ton. Straight spinning polyester and short after rising steadily, sales dull.

Yarn: cotton market is relatively stable trading, mainly combing goods to better, the remaining varieties shipped light, cotton prices are weak this week, spinning enterprises have more losses. In terms of polyester yarn, the price of raw materials rose, and the pure polyester yarn mill went smoothly. Some manufacturers reflected that the overall production and sales in May were better than that in April. This week, the market sentiment of people's cotton yarn is not high.

Downstream: at present, the stock of cloth has been increased again, but the new orders on the grey fabric end are not as good as last week. However, the industrial fundamentals have not deteriorated much since last week. Now the goods are mainly sold in the domestic market, and export is still slowly recovering, and the overall demand is not strong.

In general, yarn market transactions are being resumed, mainly based on goods, the overall demand is not strong, and the price is running weak.

[weekly market overview]

　　 This week cotton spot, polyester, short, sticky short price rose slightly compared to last week, the overall price is still weak.

　　 In terms of yarn this week, the market of cotton yarn is relatively stable. The main reason is that the goods are better and the shipment of other varieties is light. The price of cotton yarn is weak this week. In terms of polyester yarn, the price of raw materials rose, and the pure polyester yarn mill went smoothly. Some manufacturers reflected that the overall production and sales in May were better than that in April. This week, the market sentiment of people's cotton yarn is not high.

　　 Grey fabric market, according to China Textile City yard volume statistics, the total volume of gray cloth sales this week, 37 million 560 thousand meters, 530 thousand meters lower than last week. Among them, the chemical fiber cloth this week clinch a deal 23 million 760 thousand meters, account for 63.2% of total sales volume, the whole cotton cloth clinch a deal 2 million 750 thousand meters, account for 7.3% of total sales, the cotton cloth is sold 4 million 240 thousand meters, account for 11.3% of total sales volume. Compared with last week, inventory of gray fabric increased and sales decreased this week.

Pricing structure and arbitrage analysis

　　 As of May 22nd, the domestic CY C32 price was 18700 yuan / ton (0), the India C32S price was 18300 yuan / ton (0), the price difference was 400, there was no arbitrage opportunity.

[technical analysis]

This week cotton yarn CY009 contract continued horizontal finishing, shock interval 17800-19350 yuan / ton, the highest price 19660 yuan / ton, the lowest price 18985 yuan / ton. The CY009 contract held 8405 in May 22nd, 519 less than the previous trading day.

[outlook]

　　 This week cotton yarn CY009 contract price continued horizontal finishing, running interval 17800-19350 yuan / ton. Cotton yarn market as a whole is not as good as last week, cotton spinning stock pressure increased, expected price weakness leading. If the downstream orders do not improve, it is expected to increase production in June. It is expected that yarn prices will be sideways in short term. Speculators should be advised to wait and see. (for reference only)