Cotton prices hit a new annual high in August. How will the african print cotton fabrics be affected

Cotton prices hit a new annual high in August. How will the african print cotton fabric be affected?

Zhitong Finance APP learned that, according to the news of the China Cotton Association on September 13, the output of cotton reserves increased slightly in August, and corporate bidding was active, all transactions continued, and transaction prices rose. Relevant departments have issued policies that only textile companies can participate in the round-out transaction of reserve cotton. During the month, textile production remained normal, new orders decreased slightly, and the inventory pressure of finished textile products such as yarns was relatively high, and the price increase narrowed. Affected by the above factors, domestic cotton prices rose in the first half of the year and fell slightly in the second half of the year, and the monthly average price rose sharply from the previous month. In the same period, the international cotton price rose sharply, which was higher than the domestic cotton price, and the price gap between domestic and foreign cotton decreased compared with th e previous month.

Changes in domestic and foreign spot prices

1. Domestic spot prices rose sharply month-on-month

In August, the transaction of reserve cotton rounds was hot, the transaction rate was 100%, and the transaction price rose. Driven by the rising prices of futures and reserve cotton, the spot price of cotton all the way up. It hit a new annual high on August 18, with a price of 18,542 yuan/ton. At the end of the month, the state issued a policy to restrict non-textile enterprises from bidding for reserve cotton, and the prices of reserve cotton and spot transactions have fallen. During the month, textile companies demand better, especially when prices fall in the second half of the month, textile companies purchase more. At the end of the month, the China Cotton Price Index (CCIndex3128B) was 18,127 yuan/ton, a month -on-month increase of 396 yuan; the monthly average price was 18016 yuan/ton, a month-on-month increase of 1071 yuan, and a year-on-year increase of 5540 yuan.

2. The price of long-staple cotton has risen

In August, the price of domestic long-staple cotton rose sharply due to the rising price of fine-staple cotton, the gradual scarcity of resources, and the better textile demand. At the end of the month, the transaction price of 137 grades was 28,300 yuan/ton, an increase of 800 yuan from the previous month, which was higher than the China Cotton Price Index (CCIndex3128B) of 10,173 yuan during the same period, and the spread was 404 yuan wider than the end of the previous month.

3. International cotton prices have risen, and the price gap between domestic and foreign cotton has shrunk

In August, the spot price of international cotton futures rose substantially, but the average price was still lower than the domestic cotton price. Chinas imported cotton price index FCIndexM was 105.05 US cents/lb, up 5.34 US cents month-on-month; at the end of the month, it was 107 US cents/lb, up 5.08 US cents month-on-month, and 1% tariff was reduced to RMB 17,037/ton, which was lower than the domestic price in the same period. The spot price is 1090 yuan, and the price difference between inside and outside cotton is 590 yuan smaller than that at the end of last month.

4. The price rise of cotton yarn finished products tends to weaken

In August, the new orders of textile enterprises decreased slightly, and most textile enterprises prepared for the traditional peak season. At the same time, the downstream sales conductivity was slightly poor, resulting in greater pressure on the inventory of finished yarns. The growth rate of finished textile cotton yarns tended to be smaller, and the prices of polyester staple fiber and viscose staple fiber fell to varying degrees. Specifically, the month-end transaction prices of pure cotton yarn KC32S and combed JC40S were 27,300 yuan/ton and 31,350 yuan /ton, up 150 yuan and 50 yuan respectively from the end of the previous month; polyester staple fiber was 6,930 yuan/ton at the end of the month, down from the end of the previous month At 470 yuan, viscose staple fiber was 12,700 yuan/ton at the end of the month, down 150 yuan from the previous month.

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The african print cotton fabric raw material procurement and inventory

In June, the purchase of raw materials for tracking companies african print cotton fabric increased by 4.55% from the previous month, and the purchase of raw cotton increased by 7.08% from the previous month. Among them, the purchase of imported cotton decreased by 14.15% from the previous month; the purchase of non-cotton fiber increased by 0.65% from the previous month. With the support of orders, textile companies just need to stock more.

From the perspective of african print cotton fabric raw material prices, domestic cotton prices fluctuated widely in June. The government repeatedly reminded the risk of excessively rapid rise in commodity prices, and introduced a number of measures to ensure supply and stabilize prices. Cotton prices stopped rising and stabilized, while non-cotton fiber prices rose slightly. . On June 30, the main contract of Zheng Cotton Futures was 16,060 yuan/ton, an increase of 585 yuan/ton from the previous month; Chinas domestic standard cotton price was 16,460 yuan/ton, an increase of 475 yuan/ton from the previous month; the international cotton price A index was 96.7 cents/lb , A month-on-month increase of 7.0 cents/lb, discounted by a 1% tariff price of 15,362 yuan/ton, the price difference between internal and external cotton is 1,098 yuan/ton, and the price difference is reduced by about 527 yuan/ton from the previous month. In terms of non-cotton fibers, the price of viscose staple fiber was basically stable in June. On June 30, the price was 12710 yuan/ton, an increase of 110 yuan/ton from the previous month; polyester staple fiber rose slightly, and the price was 7010 yuan/ton on June 30. The month-on-month increase was 265 yuan/ton.

The african print cotton fabric raw material consumption and inventory

Tracking data shows that the consumption of raw materials for the african print cotton fabric of cotton textile enterprises increased by 2.84% month-on-month, of which raw cotton consumption increased by 2.76% month-on-month, and non-cotton fiber consumption increased by 2.99% month-on-month. As of the end of June, raw material inventory fell 4.54% month-on-month and increased 12.18% year-on-year. Among them, raw cotton inventory decreased by 5.24% month-on-month and 12.64% year-on-year; non-cotton fiber inventory decreased by 2.62% month-on-month and increased by 10.99% year-on-year.

The african print cotton fabric production status

Tracking data shows that in the first and second quarters, the output of cotton textile enterprises african print cotton fabric increased by 0.21% and 7.47% respectively from the previous quarter, and by 20.12% and 9.52% respectively year-on-year. In June, the order of textile enterprises african print cotton fabric was acceptable, and some enterprises orders were scheduled to September, and the equipment utilization rate remained at a relatively high level.

The african print cotton fabric sales and inventory

Tracking data shows that the sales volume of african print cotton fabric in May increased by 4.45% month-on-month, and the sales volume of african print cotton fabric in June decreased by 1.48% month-on-month. The overall performance of the african print cotton fabric market is relatively good, the inventory is low, the purchase and sales of the grey cloth market have weakened, and the inventory has risen.

In terms of prices, cotton prices have risen, african print cotton fabric prices have basically remained stable, and the profit margins of cotton textile enterprises have narrowed. On June 30, the price of 32 pure cotton carded yarn increased by 20 yuan/ton from the previous month, the price of 30 pure viscose yarn fell by 1,100 yuan/ton from the previous month, and the price of 32 pure polyester yarn increased by 170 yuan/ton from the previous month. The price of grey fabrics fell. On June 30, the cotton grey fabric 32*32 130*70 2/1 47" twill was 5.97 yuan/meter, down 0.03 yuan/meter from the previous month.

In terms of inventory, as of the end of June, yarn inventory decreased by 0.52% month-on-month, and cloth inventory increased by 3.26% month-on-month. In June, the yarn market was purchased and sold smoothly. The sales volume of conventional varieties in the grey cloth market was lower than that in the previous period, and the inventory had accumulated. As a whole, the companys yarn and cloth inventory was controlled within one month.

The african print cotton fabric supplier

REFINEFABRICS is a professional one-stop fine cotton fabrics solution for apparel, bedding, clothes, T-shirts, and other fashion clothing manufacturers. Having been supplying all kinds of fine cotton fabrics for over 10 years, REFINEFABRICS provides high quality, durable and beautiful cotton fabrics from Refine fabrics. If you have any needs, welcome to contact us via: sales@refinefabrics.com