Weekly Report: Cotton Yarn (Oct.15th- Oct.19th)

 The cotton spot price increased slightly compared with the price of last week in domestic market this week. On one hand, despite the actual reserves of cotton was without expanding, the cotton reserve policy was given the stable support for the quotation of domestic cotton and the cotton spot price was rising steadily. Due to the limited tolerance capacity for the cotton price between textile enterprises and purchase imported cotton, now the inventory can maintain to Dec. Therefore, the transaction of cotton spot market was cold and most of purchasing traders just kept watching. On the other hand, the by-product of cotton was also sluggish. The average price of 527 level cotton was 16,402 Yuan/ton, an increase of 18 Yuan compared with the price of last week, the average price of 328 grade cotton was 18,696 Yuan/ton, which rose 13 Yuan/ton and the average price of 229 grade cotton was 19,613 Yuan/ton, up 11 Yuan. It was expected that the cotton price would be given priority to rise slightly in afternoon market.

In the aspects of downstream market, the overall quotation of cotton yarn reduced slightly, the inventory also increased and the actual production situation was still low. The whole transaction of 100% cotton yarn was relatively mild. Meanwhile, the sales of other specification were weak except for the special varieties and combed high count yarn. The quotation remained stable and the factory slightly adjusted their offer according to themselves inventory to maintain the order production. Supported by the collection and storage, the quotation of 100% cotton yarn was steady and the adjustment range also decreased in proportion. However, the downstream demands had no improved, the manufacturers kept cautious for the afternoon market. It expected that the price would be adjusted in future. In the aspects of gray fabrics, because the turnover continued to be increased when the holiday season ended, the inventory in the weaving factories cut down. The sales situation of 100% cotton fabrics was slightly better and the shipment of some regions was faster. In addition, the price of 100% cotton yarn kept steady this week in Shengze, China. The price of all cotton 32S was quoted at 25,500 Yuan/ton, the combed 32S was quoted at 28,500 Yuan/ton, 40S was 26,600 Yuan/ton and the combed 40S was around 30,500 Yuan/ton, which was equal to the price of last week. It expected that the price of 100% cotton yarn would still follow weak trends.