Trade War To Deepen Cotton And Cotton Yarn Prices Continue To Decline

Last week (June 2019 3-6) was the fifth week of the central reserve cotton mill in 2019, and China Cotton Reserve Management Co., Ltd. has accumulated 39 thousand and 500 tons of reserve cotton, of which 19 thousand and 400 tons of Xinjiang cotton and 20 thousand and 100 tons of real estate cotton.

In the week, the average price of the reserve cotton wheel was 12593 yuan / ton, down 320 yuan / ton compared with the previous week, and the standard grade (3128B) price was 14004 yuan / ton, down 214 yuan / ton compared with the previous week.

The average price of Xinjiang cotton was 12740 yuan / ton, 409 yuan / ton less than the previous week, and the price of 3128B was 13976 yuan / ton, compared with the previous week, it dropped by 312 yuan / ton, the average increase price was 151 yuan / ton, compared with the previous week, 390 yuan / ton, the average price of real estate cotton was 12361 yuan / ton, compared with the previous week, it dropped 242 yuan / ton, and the price of 3128B was 14048 yuan / ton.

In the week, the maximum paction price of reserve cotton is 13920 yuan / ton, and the lowest paction price is 11710 yuan / ton.

Last week, the impact of Sino US trade war on cotton textile industry was not reduced. Orders for yarn, cloth and clothing continued to be blocked. Backlog stocks increased sharply, and domestic cotton and cotton yarn prices continued to decline. Some textile companies began to resist risks by holidays, limiting production, adjusting production structure, and actively developing new markets.

However, with the rapid decline of domestic cotton prices and the narrowing of the domestic and foreign cotton prices, the competitiveness of domestic cotton yarn is expected to increase.