Home > News > Content

Zhejiang: Raw Material Price Rises & Yarn Sale Exuberant

Jun 06, 2018

In may, zhejiang area is given priority to with small and medium-sized FangQi, strength is uneven, limited to the funding pressure and differentiated demand, its hard to participate in bidding, actively seek trade enterprise provides services.It is understood that the large traders bid relatively high, but most of the auction to replace the main, small inventory.

Cotton futures surged in May as volatile weather in China's xinjiang region raised expectations of production cuts, capital inflows surged and cotton futures surged.The trade of reserve cotton is very hot, and the spot price increases with the increase of cotton yarn price in the range of 1000 yuan/ton.Textile enterprises are optimistic about the future market, and actively participate in or seek reserve cotton for auction, basically keeping about 2 months of inventory, large enterprises have 4 months of inventory.

As OPEC and non-opec countries production agreement, global oil "supply side reform" helped push oil prices to rise, while the us government sanctions trump event frequency now, main oil exporting countries geopolitical crisis further lead to supply shrink significantly, this round of the crude oil prices rise quickly become a important reason, global crude oil prices more than $70 a barrel, polyester staple fiber prices rose 200 yuan/tons.In late may, because hengyi opened two new factories this year, the domestic short fiber production capacity was excessive, and the price began to drop. However, supported by the cost of raw materials, the price dropped by about 150 yuan/ton. Short fiber is expected to be stable overall next month, supported by the cost of limited downside space.(national cotton market monitoring system zhejiang office)