Around the Spring Festival, cotton prices at home and abroad rose sharply, and futures prices rose more than spot prices. Cotton yarn prices at home and abroad rose in a consolidation. The price of polyester staple fiber rose.
1. Domestic cotton prices continue to rise
Around the Spring Festival, the domestic holiday atmosphere is still strong, the purchase and sales of cotton spot basically stagnated, Zheng Mian rose in line with the external market. On February 8-19, 2021, the main contract settlement price of cotton futures on the Zhengzhou Commodity Futures Exchange was 15,775 yuan, an increase of 674 yuan/ton or 4.5% from the previous week. The average price of the National Cotton Price B Index, which represents the market price of standard-grade lint in the Mainland, was 15,597 yuan/ton, an increase of 392 yuan/ton or 2.6% from the previous week.
2. International cotton prices continue to rise
Around the Spring Festival, the global growth rate of confirmed new crown cases has slowed. The United States will introduce large-scale stimulus measures. The U.S. Department of Agriculture's supply and demand report raised the 2020/21 forecast for U.S. cotton exports and lowered the ending stocks to set a positive tone. The increase in demand for food has increased the market’s expectations for a decline in the area of cotton planted in the new year. Many factors have pushed up international cotton prices. On February 8-19, 2021, the settlement price of the main contract for New York cotton futures was 88.53 US cents/lb, an increase of 5.48 US cents/lb from the previous week, or 6.6%. The International Cotton Index (M), which represents the average CIF price of imported cotton in China’s main ports, has an average price of 94.13 US cents/lb, an increase of 5.25 US cents/lb or 5.9% from the previous week, which is equivalent to RMB 15,211/ton (by 1 % Tariff calculation, including port miscellaneous goods and freight), an increase of 824 yuan/ton from the previous week.
5.7%, the international cotton price is 386 yuan/ton lower than the domestic cotton price, and the price difference between inside and outside is reduced by 432 yuan/ton compared with the previous week.
3. Yarn prices at home and abroad rose in consolidation
After the Spring Festival, domestic downstream textile and grey cloth enterprises gradually resumed work and production. Most manufacturers raised their quotations in accordance with the raw material market, and sales have not yet started on a large scale. The operation of the overseas cotton spinning market has recovered rapidly since late December 2020. The price of outer yarn has increased more than that of the domestic market, and the price difference between the inner and outer yarns continues to be inverted.
Potential. As the pace of purchases by Chinese buyers continues to slow, the price gap between internal and external yarns continues to narrow, and conventional external yarns are 702 yuan/ton higher than domestic yarns
