1. Domestic cotton prices rose slightly

Last week, good news came out of the China-U.S. Trade talks. The original plan to increase tariffs on China on December 15 was postponed, and domestic cotton prices rose. The national cotton price B index representing the sale of standard lint in the Mainland was 13131, an increase of 80 yuan / ton, or 0.61% compared with December 6. The Zhengzhou Cotton Futures main contract settlement price was 13,355 yuan / ton, an increase of 215 / Tons, an increase of 1.64%.

2. International cotton prices rose sharply

Affected by the optimistic expectations of China-US trade talks and the increase in US cotton contracting volume last week, international cotton prices rose sharply. The International Cotton Index (M), which represents the average CIF price of imported cotton from China ’s main port, is quoted at 77.83 cents / lb, which is converted to RMB 13,445 / ton at a 1% tariff, an increase of 527 yuan / ton from December 6 4.08%.

3.Polyester staple fiber continues to rise

Driven by the rise in polyester raw materials last week, the price of polyester staple fibers stabilized and rebounded. Manufacturers' prices slightly increased, and the actual price was 6700-6850 yuan / ton. The price index of polyester staple fiber closed at 6,900 yuan / ton on Friday, up 200 yuan / ton or 2.99% from December 6.

4. Viscose staple fiber fell below the 10,000 yuan mark

Last week, the market for viscose staple fibers remained weak. Manufacturers proactively shipped goods, and the profit margin was large, but there was no intention to take goods downstream. The recent decline in yarn prices has led to a reduction in purchase orders for raw materials for yarn mills. At present, the price of mid-range viscose staple fiber is 9700-9900 yuan / ton and high-end 10100-10200 yuan / ton. Last Friday, the price index of viscose staple fiber closed at 9,800 yuan / ton, falling below the 10,000 yuan mark, down 200 yuan / ton from December 6, a decrease of 2.00%.

5. Various types of yarn at home and abroad continue to weaken

Last week, the domestic cotton yarn market weakened, and pure cotton yarns were mainly sold in favor of shipments. Cotton yarns fell by 50 yuan / ton within 32S weeks; international cotton yarn sales were light, and foreign yarn prices continued to fall; domestic yarns still dominated, and conventional foreign yarn prices Higher than the domestic yarn of 179 yuan / ton, the price gap further narrowed; artificial cotton yarn prices dragged down by raw materials continue to reduce prices, artificial cotton yarn price of 130 yuan / ton within 30S weeks. Polyester yarn failed to rebound with polyester staple fiber, pure polyester yarn fell slightly by 20 yuan / ton within 32S weeks. The downstream weaving mill plans to take a holiday in advance, and the cotton fabrics will be sold at reduced prices.

Economic and industry operation

1. In November, the value added of the industrial enterprises above designated size increased by 6.2%

In November 2019, the added value of industrial enterprises above designated size actually increased by 6.2% year-on-year, an increase of 1.5 percentage points from October. From a month-on-month basis, in November, the added value of industries above designated size increased by 0.78% over the previous month. From January to November, the added value of industries above designated size increased by 5.6% year-on-year.

In view of different industries, in November, 38 of the 41 major industries maintained year-on-year growth in value added. The agricultural and sideline food processing industry decreased by 0.6%, the textile industry increased by 2.5%, the chemical raw materials and chemicals manufacturing industry increased by 7.9%, the general equipment manufacturing industry increased by 6.2%, the special equipment manufacturing industry increased by 7.0%, and the electrical machinery and equipment manufacturing industry increased by 12.6 %, Computer, communications and other electronic equipment manufacturing increased by 9.7%.

2. Total retail sales of consumer goods in November increased by 8.0%

In November 2019, the total retail sales of consumer goods was 389.4 billion yuan, a nominal increase of 8.0% year-on-year. From January to November, the total retail sales of consumer goods was 3,728.7 billion yuan, a year-on-year increase of 8.0%. From January to November 2019, the nation's online retail sales were 945.8 billion yuan, a year-on-year increase of 16.6%. Among them, the online retail sales of physical goods were 762.3 billion yuan, an increase of 19.7%, accounting for 20.4% of the total retail sales of consumer goods. Of the online retail sales of physical goods, food, clothing and consumer goods increased by 29.6%, 16.5%, and 19.8 respectively. %.

3. The cotton industry inventory decreased and the yarn production and sales rate decreased slightly.

According to the national cotton market monitoring system sampling survey, as of the beginning of December, the average days of cotton use of the sampled surveyed enterprises was about 27.4 days (including the amount of cotton imported to Hong Kong), which was 1.3 days lower than the previous month and 10.2 days lower than the same period last year. The national cotton industry inventory is estimated at 577,000 tons, a decrease of 6.4% month-on-month and a decrease of 31.9% year-on-year.

At the beginning of December, the sample surveyed company's yarn production and sales rate was 98.1%, a decrease of 0.8 percentage points month-on-month, and the inventory was 23.2 days of sales, an increase of 0.1 days month-on-month. The production and sales rate of cloth was 90.3%, which was flat month-on-month, down 6.4 percentage points year-on-year, and 6.8 percentage points lower than the average level in the past three years. Inventory was 50.0 days of sales, a decrease of 0.1 days month-on-month, and an increase of 16.3 days, a year-on-year increase. The average level during the same period was 13.3 days higher.

4, Shandong cotton market transactions deserted, high yarn demand improved

Recently, although the purchase and sale prices of cotton in Shandong have risen steadily and moderately, the overall cotton market transaction has been deserted. Buyers are watching and sellers are reluctant to sell. The yarn market is uneven. At present, the conventional yarn market in Shandong textile market is weakening, and the demand for high yarns is increasing. The first is the weakness of conventional yarns and low-count yarns. On December 11, the quoted price of 21S for a card in a Texas plant was 19,400 yuan / ton, and the price for 32S was 20,500 yuan / ton, which was the same as yesterday. Secondly, the recent compact spinning 60S can be described as a standout, because the seasonal demand is significantly better than others. Varieties, currently a local textile company compact spinning JC60S offer 33,700 yuan / ton, the manufacturer has no inventory.

Industry policies and developments

1.China and the United States reach agreement on the text of the economic and trade agreement in the diyi stage

Thanks to the joint efforts of the Chinese and American economic and trade teams, the two sides have reached an agreement on the text of the Sino-US diyi economic and trade agreement on the basis of equality and mutual respect. The text of the agreement includes nine chapters: preamble, intellectual property, technology transfer, food and agricultural products, financial services, exchange rates and transparency, expanded trade, bilateral assessment and dispute settlement, and final clauses. At the same time, the two sides reached an agreement that the United States will fulfill its relevant commitments to phase out tariff increases on Chinese products in stages and realize the transition from increasing to decreasing tariffs.

The two parties agreed that in the next step, both parties will complete the necessary procedures such as legal review and translation proofreading as soon as possible, and negotiate the specific arrangements for the formal signing of the agreement.

2. In the third week (12.16-12.20), Xinjiang cotton wheels entered the bidding with a high price of 13,425 yuan / ton

According to the calculation formula for the price of Xinjiang cotton wheels entered by the State Food and Materials Reserve Bureau and the Ministry of Finance (No. 3, 2019), in the third week (December 16-20), Xinjiang cotton wheels entered the bidding at the highest price Standard grade 3128B) 13425 yuan / ton, up 109 yuan / ton.

3, 3 Chinese brands involved in the textile industry were shortlisted in the world's top 500 brands

The 2019 (sixteenth) "World Top 500" ranking exclusively compiled by the World Brand Lab was announced on December 11 in New York, USA. Thanks to business growth in areas such as cloud computing and driverless, last year's runner-up Google beat Amazon to top the list; Amazon dropped to second place; Microsoft reported a big increase in net profit in fiscal 2019. Ranked third. China has selected 40 brands. Among them, 3 were involved in the category of textile Chinese brands, which were 78th China Resources, 415th Hengli and 470th Weiqiao. In addition, 29 of the world's top 500 brands involve textile and apparel brands.

4. The US issues the sixth batch of US $ 200 billion tax-excluded list

On December 12, local time in the United States, the Office of the United States Trade Representative (USTR) announced the sixth batch of product exclusion announcements under the US $ 200 billion tariff-added commodity list. This exclusion involved a total of 44 products, including 3 textile and apparel products. Tax ID. As of now, the US has issued 6 batches of 200 billion product exclusion lists totaling 18 textile and apparel product tax numbers.

The three categories of textile and apparel products specifically excluded and the HS codes are as follows:

1.5408.32.9050, rayon satin woven fabric, composed of 63% rayon and 37% combed cotton, dyed, weight not exceeding 211g / m2;

2.5603.94.1090, non-woven carpet pads, each including 100% polyester fiber fabric, laminated to a thermoplastic elastomer surface, weighing more than 150g / m2;

3.5609.00.3000, artificial fiber rope, each length is 1.7 meters or more, but not more than 6.1 meters, breaking strength is 22 kg or more, but not more than 230 kg, with metal hooks and locking mechanism to keep the rope's tension;

5. Cotton Textile Standards Annual Meeting Held Three Industry Standards Passed Revision

Recently, the 2019 Cotton Textile Standards Annual Meeting was held in Nanjing. The meeting reviewed and revised the "Polyacrylic Sizing for Textile Warp Sizing" and "Determination of Nonvolatile Content of Polyacrylic Sizing for Textile Warp Sizing" And "Textile warp yarn sizing polyacrylic acid sizing test method viscosity determination" and other three textile sizing related standards.

Fourth, reduced production affects digestion

Good trade frictions follow

Last week, international crude oil futures prices showed a volatile upward trend. OPEC's decision to deepen production cuts did not fully support oil prices, and oil prices remained in a narrow range in the early stage. Last week, US API crude oil inventories unexpectedly increased by 1.41 million barrels. In addition, Russia seems reluctant to make efforts to reduce production. It is reported that the Russian Ministry of Energy has not informed the country's oil companies about the new production quotas. Crude oil once fell by 2% due to many negative effects. However, an agreement was reached at the diyi stage of the China-US trade talks. Risk sentiment picked up, and oil prices recovered all losses. WTI oil prices closed at 59.78 on Friday, once surpassing the $ 60 mark in intraday trading, setting a new high since September.

V. Major Benefits of China-US Trade

RMB broke 7 again

On the evening of the 12th, good news about the trade situation came out, which directly caused the yuan to soar. In the evening of the 12th, the offshore RMB soared by 500 points in the short-term and returned to the "6" era. Since then, the offshore yuan has continued to rise, closing up 835 points on the 12th. After the opening on the 13th, it continued to fluctuate upward, rising to 6.9277 yuan, with an amplitude exceeding 1,000 points. On the 13th, the renminbi fell slightly to close at 7.0053. In addition, the Fed stopped cutting interest rates, and the possibility of central banks in other countries to continue easing was reduced, leading to risk currency appreciation and depreciation of the US dollar. After the Central Economic Work Conference, we are more confident about China's economic growth next year, and it is expected that the Chinese economy will continue to maintain steady growth. In this context, the opening up of financial markets will be further strengthened, and international institutions will continue to be bullish on China's capital market. It is expected that the RMB will generally appreciate slightly against the USD.

Source: Textile Net

Hai'an County Qinfeng Chemical Fiber Co., Ltd. is a company specializing in the production, research and development and sales of polypropylene staple fiber, polyester staple fiber, functional polypropylene staple fiber and PP staple fiber. It is based on innovation and sets a good example for the industry. Its polypropylene short fiber main specifications 1.5D to 200D, length 5-150mm, product color is complete, a wide variety, support color to map or sample custom. Qinfeng will always adhere to the business philosophy of “pursuing excellence and creating brilliance”. We sincerely look forward to your call!