The supply pressure will gradually increase in the later period, and it is expected that the lint market will remain weak and downward.

Source: Jintou.com

According to monitoring by SunSirs, the domestic price of 3128B lint was 14,924 yuan/ton on the 2nd, a drop of 146 yuan/ton or 0.97% from last week.domesticcottonThe spot trading atmosphere is sluggish, and the spot price of cotton falls.

Supply side: According to the statistics of the national cotton trading market, as of December 2, 2022, the total amount of lint cotton processed in Xinjiang was 2.6889 million tons, a year-on-year decrease of 25.61%. At present, the overall epidemic situation in Xinjiang has improved compared with the previous period, and the speed of warehousing and public inspection has been significantly accelerated. On November 30, the public inspection volume has reached 37,000 tons. The supply of new cotton will continue to recover. With the acceleration of the new flower market, Overall supply and demand remain loose.

Futures: With the adjustment of prevention and control policies, the market expects that the outlook for cotton consumption may improve, and pessimism has eased.Zheng MianThe futures price first fell and then rose, Zheng Mian’s main force was converted to 05 contract, and the settlement price of the main contract on the 2nd was 13,430 yuan/ton. ICE cotton futures rose slightly, with the average settlement price of the main contract at 82.26 cents/lb, up 0.94 cents/lb or 1.2% from the previous week.

Demand side: Downstream demand is weak, and the trading atmosphere in the cotton yarn market is still weak. Many places in the mainland are in a state of market closure and rest. Textile enterprises still mainly purchase raw materials for raw material replenishment. At present, the inventory of finished products in the industrial chain is at a high level and continues to accumulate. As of last Friday, the inventory of cotton gray cloth was 38 days, and the inventory of cotton yarn in spinning enterprises was 34 days. The influence of management and control in Shandong, Henan, Hebei and other places has caused textile enterprises to actively or passively reduce the start-up or stop production, and the start-up rate of textile enterprises has continued to decline. Some enterprises expressed difficulty in bearing the financial pressure, difficulties in selling finished products, and slow recovery of payment.

Analysis and prediction: Entering December, the overall atmosphere of the textile industry is not optimistic. The phenomenon of enterprise shutdown and production suspension is increasing. The new cotton market is accelerating, and the supply pressure will gradually increase in the later period. It is expected that the lint market will remain weak and downward.

(Article source: SunSir)

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