Price trend

According to the monitoring of SunSirs, the price of grade 3128 lint was 15,191 RMB/ton as of the 13th, up 0.66% from last week. This week, cotton prices rose first and then fell, and the number of small and medium-sized textile enterprises that were shut down for holidays increased, and the overall market purchase and sales slowed down.

Analysis review

At the beginning of the week, the cotton spot market rose slightly, and by Thursday, the market had turned around and declined. Near the end of the year, cotton enterprises were still highly motivated to sell, and some of the low-grade lint resources fell slightly, and the transaction volume was slightly reduced. The National Cotton Market Monitoring System carried out a nationwide cotton planting intention survey in the middle and late November of last year. According to the survey, China's cotton planting area was 42.747 million mu in 2023, with a year-on-year decrease of 1.534 million mu, of which Xinjiang's intended cotton planting area was 36.274 million mu, with a year-on-year decrease of 630,000 mu. With the decrease of planting area and the overall relaxation of domestic epidemic prevention policy, the market expects the demand to recover in the future, and the cotton price performance is relatively strong.

Downstream cotton yarn market transactions weakened, and some textile enterprises will have plans to raise yarn prices after the year, and finished product inventory will remain low. As the Spring Festival approaches, downstream yarn enterprises have holidays in succession, cotton yarn is basically in the final stage, and the overall starting rate of grey fabric continues to decline. The replenishment of textile enterprises before the festival came to an end, the domestic terminal demand did not improve significantly, and the enthusiasm of textile enterprises for procurement declined. However, after the Spring Festival, the operating rate of enterprises is expected to increase significantly and the confidence of enterprises will gradually rise.

Market outlook

In the last week before the Spring Festival, due to the increase of logistics outage and other reasons, the cotton trading volume will gradually decrease. It is expected that the rising trend of cotton will slow down before the year. At the same time, it is also necessary to be careful of the risk of market decline after the festival.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com