Cotton: the end consumer remains weak

Recently, the main cotton Zheng 1605 contract continued downward, the average system also downward divergence. Downstream textile consumption weak appetite, is expected to post Zheng cotton will continue decline. Fiber masterbatch

Downstream textile consumption in the doldrums

Subject to the bad economic environment, the domestic market downturn and fierce competition in export markets, imports of yarn and cloth squeeze the domestic share and fiber substitution and other factors, China's textile industry is facing the situation is more serious, dramatic drop in cotton consumption. White masterbatch buyers

First, the textile and apparel retail despite improved, but the effect is not obvious. According to the statistics of the China National Commercial Information Center, October 2015 national hundred key large retailers clothing retail sales rose 1.9 percent, reversing since June 3 consecutive months growth slowdown, the growth rate compared to 2014 Fast 4.4 percentage points over the same period, compared to 6.7 percent increase in September. Meanwhile, retail sales data show that in October the amount of the national hundred key large-scale retail enterprises of various types of clothing retail sales grew 8.5%, 0.5 percentage points lower than in September. According to published data, in October the domestic apparel sales improved, but not significantly, China's textile and clothing still sluggish domestic sales. White masterbatch buyersFiber masterbatch

Second, the textile and apparel exports continued negative growth year on year. The latest Customs data show that in November 2015, China's textile and apparel exports 21.982 billion US dollars, a decline of 7.07%, down 9.71%. As of November 2015, there are 10 years of textile and apparel exports increased month of negative growth, visible cotton downstream consumer demand is not optimistic.

Third, the textile industry as a whole is poor stocking enthusiasm. China Cotton Information Network statistics show that in November 2015, cotton textile enterprises in the library inventory 419,000 tons, compared with October increased 29,600 tons; disposable cotton textile enterprises stocks 421,900 tons, representing a reduction of 15,000 tons in October . That same month, cotton spot market resources are relatively abundant, most companies fear a limited number of high-grade cotton, post-purchase difficult Batch, and centralized replenishment. White masterbatch buyers

However, due to lack of confidence in the market outlook, combined with relatively tight money, many companies maintain a low disposable inventory, and purchase intent weakened late.Fiber masterbatch

High stock market is "flawed"

US Department of Agriculture crop report forecast in December, 2015/2016 annual global cotton production was 22.58 million tons, compared to the predicted value of 调减 417,000 tons in November; the global consumption of 24.252 million tons, 44,000 tons Diaojian; global import and export trade volume of 7.7 million tons, an increase of 220,000 tons; global ending stocks of 22.729 million tons, 369,000 tons Diaojian; global stock consumption ratio was 93.72 percent, 7.76 percentage points decrease. December supply and demand report, the global cotton production is reduced, consumption decreased slightly, inventory reduction, the overall bullish for cotton. However, the global stock consumption ratio is still high, the supply of loose pattern has not changed, inventory is still high cotton prices upward constraints "flawed." White masterbatch buyersFiber masterbatch

In summary, the downstream end cotton demand is low, restricting textile enterprises take the goods, and then drag their stocking enthusiasm. Moreover, the textile industry is relatively widespread shortage of funds, limiting its procurement schedule, the cotton market supply remained relaxed. Before a substantial improvement in the downstream consumer, cotton prices weak. White masterbatch buyersFiber masterbatch