Weekly Market Review Of Hebei, Shandong And Henan (February 15Th -21)

As the upstream and downstream textile enterprises returned to normal, there was a small quantity of shipments in the last two days. The shipment was basically the order before the holiday. As the number of enquiries increased, a small number of new orders were also placed. As a whole, the market after the festival began to start, and the market development was mainly after the first fifteen months. This week (February 15th -21), all fields have just begun. Start In the resumption of production, the textile market of Ji Lu Yu did not show any improvement.

Raw materials: one week after the start of the week, due to part of the cotton textile enterprises and in and out of Xinjiang cotton The processing enterprises are still in a semi vacation state, so the market starts slowly, but this week's cotton quotation has a reduction of 100-200 yuan / ton, and the current quotation is also tentative for cotton enterprises, because there is no support for downstream orders.

Industry analysis: expected in the first half of the domestic Cotton price It is likely that there will be a downward trend, and cotton prices will basically reach a dynamic balance at home and abroad in the second half of this year. The price of PET staple is at 6400 yuan / tonne this week, and the price of viscose staple fiber is currently maintained at 12800 yuan / ton.

Yarn: by the end of this week, the operating rate of the textile enterprises in Hebei and Henan provinces has reached 95%. Only some small factories and inefficient enterprises are still hesitating, considering whether they can persist after starting.

At present, Shandong, Hebei, Henan and other places of small and medium-sized spinning low and medium yarn enterprises, because of fierce competition, conventional products are low risk, low profits, plus the overall cost is basically calculated at a loss, the result of a vicious cycle can only be shut down.

Besides, many cotton textile enterprises enjoying preferential policies in the early stage of Xinjiang's factories and factories will produce large quantities of conventional yarn coming into the mainland this year, which will seriously impact on the mainland counterparts. Therefore, many enterprises in this situation are actively looking for a way out, adjusting their product mix, carrying out spanformation operations, and dragging themselves out of the vicious cycle of marsh and embarking on a virtuous circle. Although there are ideas, but the process is painful and long, only to see if we can stick to it.

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After Zheng cotton arrived at the lower edge support of the downstream channel since last October, there was a demand for technology rebound. In January, Zheng cotton technology rebound was the main, and the upper pressure level was 11500-11600. From a fundamental point of view, there is a lack of further negative factors, but there are not enough effective ones. It can be said that the market rebound can be expected, but the reversal is still hard to come up with.

The US Department of agriculture continues to reduce the output and demand of global cotton (10525, 15, 0.14%) in 2015/16, and the supply and demand is two, but the supply is lower than the demand. The stock dropped from 22 million 610 thousand tons last month to 22 million 760 thousand tons. Analysis under

The reason for the adjustment of the global cotton supply and demand data is that the supply reduction is mainly due to the weather problems in the US harvest and the weather related problems encountered during the growth period such as China. The demand reduction is mainly due to a slight reduction in India, and some other main selling countries have also been downgraded. China's demand has not been further lowered in this report.

India's overall domestic demand is weak, and the price of new cotton is weak after listing. Therefore, export expectations are relatively strong. This time, it continued to raise its export expectations, from 1 million 160 thousand tons last month to 126 tons, ending inventory dropped from 2 million 550 thousand tons last month to 2 million 700 thousand tons, and the country's stock has been down for third consecutive months.

2015/16 cotton stocks rose from 650 thousand tons to 680 thousand tons, mainly due to weak domestic demand and export demand. In China, the end of last year stock reduction was cut down from 14 million 70 thousand 1418 tons last month due to reduced production.

Global cotton stocks are down, but the data are much more overall, but demand data are still weak and dynamic, the market rebounded, but the intensity is still insufficient and needs further rewarming. In this report, China's demand has not been further lowered or released.