The inventory of domestic downstream finished products is obvious, but the inventory of raw materials is also very low, especially the inventory of cotton yarn in weaving mills is lower than 20 16 in the same period.
The domestic epidemic situation has been basically controlled, and the overseas epidemic situation has generally increased rapidly. However, in hard-hit Europe, there are signs of peaking and falling.
As of April 6th, the total number of overseas confirmed cases was 1205234, which showed a downward trend for two consecutive days since April 3rd. Since March 26th, the number of new cases in Spain has dropped from a high of 827 1 to 3386. Since March 2 1, the number of cases in Italy has dropped from a high of 6557 cases to 43 16 cases at present.
Since March 25th, the number of new cases in Germany has dropped from a high of 7839 to 4024. Judging from the situation in Europe, the epidemic situation can be controlled and prevention and control can be done. If, as predicted by the White House, the number of confirmed cases in the United States peaks within a week, the overall market sentiment will be much better.
The high cost of new cotton provides support for the futures market, while the downstream market is weak, the confidence of enterprises is insufficient, and the high cost of raw materials increases the downward conduction resistance. Cotton futures have experienced a sideways stalemate for more than a month. With the acquisition of seed cotton in Xinjiang basically finished, the market focus gradually turned to the downstream demand side. Recently, COVID-19 mutant has attracted the attention of the market and become the fuse of the market decline.
Due to the spread of foreign epidemic, export orders plummeted, and the worst period of consumption has not yet arrived. However, the current decline in cotton prices has reflected this disadvantage in advance, so the key to affecting the market in the future is expected deviation. Due to pessimistic expectations, people are extremely cautious when buying raw materials. If the consumption results are slightly better than expected, lower raw material inventories may promote the rebound.
TTEB data shows that as of April 3, the inventory of cotton raw materials in textile enterprises was 32.9 days, an increase of 1.3 days year-on-year; The inventory of cotton yarn raw materials in the weaving factory was 6.6 days, 6.4 days less than last year. The inventory of finished cotton yarn in textile enterprises is 27. 1 day, 4.6 days more than last year. The inventory of finished cotton cloth in weaving factory was 26.7 days, which was 1. 1 day more than last year.