Market Analysis: Weekly News Of Textile Industry

Raw material Market

Domestic and foreign cotton prices rise

(July 6-10, 2020)

From July 6 to 10, 2020, the settlement price of the main contract of Zhengzhou cotton futures was 12005 yuan / ton, an increase of 215 yuan / ton or 1.8 yuan over the previous week; The settlement price of the main contract of New York cotton futures was 63.7 cents / pound, up 2.14 cents / pound, or 3.5% compared with the previous week; the recent cotton market led to the improvement of the international cotton yarn inquiry atmosphere, and the bullish expectation became stronger, and the international cotton market was expected to try to break through 65 cents / pound in the short term. However, we need to be alert to the current global risk aggregation, increase the difficulty of market turbulence and economic recovery, and limit the space for cotton price rise.

The business of reserve cotton is popular, and the price increase of enterprises is fierce

With the gradual recovery of domestic textile market, the demand for medium and low count yarn is increasing. Since the beginning of the reserve cotton round in July, the market has generally focused on the reserved cotton, and the enterprises participating in the bidding for reserve cotton have increased their prices fiercely.

China's import of cotton ring yarn increased in June

In June 2020, China's cotton import volume was 90000 tons, an increase of 29% compared with the previous month and a decrease of 44% compared with the same period last year. China's cotton imports will decrease by 89% in 2020. Since the year of 2019 / 20 (from September 2019 to June 2020), the cumulative import of cotton was 1.3 million tons, a year-on-year decrease of 27%.

Textile exports continued to rise, cotton prices continued to rise

According to the survey of China Cotton Association, the national cotton yield in 2020 / 21 is expected to slightly increase year-on-year, with a total output of about 5.765 million tons, a year-on-year decrease of 2.4%. In the first half of the year, China's economy first fell and then rose. In the second quarter, the economic growth turned from negative to positive. The main indicators recovered, and the economic operation recovered steadily. Cotton prices at home and abroad rose.

Industry trend

Analysis of China's textile market in 2020

Since 2018, the textile machinery industry has further promoted industrial upgrading, and has made progress in various aspects such as new high efficiency, low energy consumption, flexibility, automation, digitization and intellectualization. Technological innovation and structural adjustment have supported the steady growth of the industry. Since 2019, the overall operation quality and efficiency is good. In 2019, the industrial added value of Enterprises above Designated Size in China's textile industry will increase by 1.3% year-on-year.

The development dilemma of textile industry: 1. The homogenization of low-grade products is serious; 2. The products are greatly affected by external factors

Development prospects of textile industry: (1) policy environment support is the basic guarantee for industry development; (2) the huge development potential of downstream textile industry is an important support for the sustainable development of textile machinery industry; (3) national supply side reform policy guides industrial structure upgrading; (4) global textile industry transfer trend brings new opportunities; (5) demand growth brought by textile printing and dyeing enterprises concentration increase

Restart 2020: grand opening of Dawan Textile Expo! Industrial chain collaboration helps enterprises "ride the storm"

On July 15, Dawan district's first textile and garment industry chain Exhibition - 2020 Dawan District International Textile and clothing Expo opened grandly.

Policies and regulations

Amendment of cotton futures and option contract rules issued by the Zhengzhou Mercantile Exchange

Announcement on the amendment of cotton futures and option contract rules issued by the Zhengshang exchange. After deliberation and approval at the third meeting of the seventh board of directors of Zhengzhou Commodity Exchange, and reported to China Securities Regulatory Commission (CSRC), the implementation details of cotton futures, option contracts and futures delivery of Zhengzhou Commodity Exchange, management measures of standard warehouse receipts and transfer warehouse receipts of Zhengzhou Commodity Exchange, management measures of futures trading risk control of Zhengzhou Commodity Exchange, and implementation details of bonded delivery of Zhengzhou Commodity Exchange The relevant contents of "then" cotton futures have been revised, and the amendment is hereby promulgated and shall come into force as of September 1, 2021.

12 national standards and 11 industry standards related to industrial textiles industry issued

Recently, the people's Republic of China national standards Announcement No. 17 and No. 19 in 2019, the State Administration of market supervision and Administration (National Standardization Administration Committee) approved the issuance of relevant national standards, including 12 industrial textiles industry standards.

The Ministry of industry and information technology of the people's Republic of China issued announcement No. 61 in 2019, approving 55 textile industry standards, including 11 related to industrial textiles industry.

The above standards will be implemented on July 1, 2020.

Insight Economics

Affected by the new crown epidemic, the export of West African cotton fiber to China dropped sharply

From August 2019 to April 2020, the export volume of cotton fiber from West African countries to China is only 53000 tons, a significant decrease of 48% compared with 101000 tons in the same period of last year. According to the International Cotton Advisory Committee (ICAC), China is the world's largest cotton consumer, and the slowdown in China's textile industry demand in the context of the new crown epidemic is the main reason for the sharp decline in West Africa's exports to China.

USDA: China's cotton import demand is expected to maintain steady growth

At present, the new crown epidemic has significantly affected China's textile production and cotton import demand. In the future, cotton production in mainland China will continue to decline, and Xinjiang's expansion capacity will be very limited. Although the growth rate of global consumption is expected to be close to that of China, the growth rate of import is expected to be relatively stable.

Developing cotton resources cooperation, China and Pakistan jointly promote the development of cotton seed industry

Recently, the Cotton Research Institute of Chinese Academy of Agricultural Sciences has cooperated with universities and scientific research institutions such as Multan cotton Institute of Pakistan and Faisalabad Agricultural University to carry out identification and Germplasm Innovation of cotton with high temperature resistance, drought resistance, disease resistance and insect pests resistance and high quality, and jointly publish scientific papers.