Will The Short Sale Be Oversold For A Month? Sticky Short Cuts, Trial Ups Are All Out Of Order, And Traders Are Less?

Market brief

Zheng cotton main shock concussion, the price center of gravity continues to move upward, the main contract shorts slightly reduced positions, concerned about Zheng cotton performance near 11800. The enthusiasm of the downstream point purchase is still insufficient, and the spot trading atmosphere of cotton continues to be slack. The real trading price is slightly stronger, and the downstream demand has not improved significantly. The demand for goods has been maintained. The quality of the lint market resources is uneven. The quality of cotton lint resources is hard to find, showing a strong trend. Generally speaking, short term demand is still difficult to recover, and the market is still not enough. It is still difficult to have a trend of short-term cotton prices and continue to suffer from regional shocks. It is necessary to pay attention to the progress of Sino US trade and whether the output of cotton in India and Pakistan will be substantially reduced.

Acrylonitrile price range shocks, factory prices are stable, business offer changes are limited, with the market trader mainly, the downstream user purchase enthusiasm generally, wait and see the focus of the transaction to follow up the situation, there is no lack of high-end offer heard, raw material propylene prices rise again, cost pressure acrylonitrile manufacturers still have the expected increase, but the output has growth expectations, can break through the new points. Wait and see. Acrylonitrile staple fiber prices stabilized temporarily, cost support continued, acrylic fiber market has no shortage of news heard, but the downstream textile plant start-up rate is slow, cotton mill stock is still higher, expected acrylic fiber market supply and demand side is still weak, prices are only followed by raw material price fluctuation, followed by attention to acrylic fiber plant production cut news.

Recently, the Xinxiang chemical fiber Limited by Share Ltd announced that in order to reduce the company's debt level, improve the profitability of the company, and further enhance the overall strength of the company, the company intends to introduce the third division of Xinjiang production and Construction Corps and Tumu Shuker City Investment Group Co., Ltd. as a strategic investor through non-public offering. After the completion of the non-public offering, the Xinjiang Construction Corps, the third division, has a shareholding ratio of more than 10%, which is expected to become the third largest shareholder of the company. The Xinxiang chemical fiber will also play a synergistic role with the city in the textile industry. According to the content of cooperation, Xinxiang City chemical industry also ensures that under the same conditions, the chemical fiber in the city of Xinxiang will receive the necessary raw materials such as cotton lint and so on. The actual supply will not be lower than the enterprise demand or not less than 60 thousand tons. At the same time, in the third division area, priority should be given to the protection of Xinxiang chemical fiber demand, to the supply of water, sewage, power, steam and so on. In addition, it will rely on local resources and operation subsidiaries to provide logistics and transportation, import and export clearance for Xinxiang chemical fiber, and tap and build government communication channels.

2020 Zhejiang export online trade fair (US Station textile special field) was successfully held in Eastern time in from May 25th to 29th. A short 5 day exhibition actually brought a spectacular feast to the audience. According to the platform statistics, a total of 1795 high-quality buyers from 40 countries and regions such as the United States, Canada and India have conducted online exhibitions and procurement docking, including many well-known buyers. The exhibition was held in conjunction with the online virtual exhibition of Miami clothing and Textile Fair in 2020, attracting a total of 113 garments, home textiles, garments and noodles at home and abroad. Accessories business exhibitors, including nearly 60 high-quality textile suppliers in Zhejiang online. During the launch, exhibitors exhibited 4689 products, and the exhibits covered a wide range of products, which fully met the needs of different types of buyers.

The announcement of the 01382.HK will be held on June 18, 2020 (Thursday) to consider and approve the annual performance announcement of the company and its Affiliated Companies for the financial year ended March 31, 2020, and to consider the release and payment of the final dividend (if any).

Recently, China Chemical Fiber Industry Association released the list of output of China chemical fiber industry in 2019. According to the list, Limited by Share Ltd of Tong Kun group ranked first in the four rankings of China's chemical fiber production (excluding DTY), Chinese polyester filament production (excluding DTY), Chinese polyester POY production and China sliced polyester filament production (excluding DTY) in 2019, and continues to maintain the leading position in the industry. Today, the Tong Kun group has already built an unmanned factory and a black light workshop. It has five series of more than 1000 polyester filament products, and the product differential rate has reached 68%. Almost all sizes of polyester filament can be produced from 50D to 1000D. It is known as the "WAL-MART" of China polyester filament industry. As the leader of the global chemical fiber industry, the production and sales volume of polyester filament in Tong Kun group has been the first in the world for more than 10 consecutive years, accounting for about 18% of the total domestic share and about 12% of the world's total. At present, PTA has 4 million 200 thousand tons of capacity and 6 million 900 thousand tons of polyester filament per year.

In the 1-4 month of 2020, the printing and dyeing enterprises in scale printing and dyeing enterprises produced 13 billion 300 million meters, representing a decrease of 15.9% compared with the same period last year. The main business income was 69 billion 200 million yuan, a decrease of 20.2% over the same period last year; the total profit was 2 billion 100 million yuan, a decrease of 33.5% compared to the same period last year; the sales profit margin was 3.1%, which was 0.6 percentage points lower than that of the same period last year; the main business cost was 60 billion 900 million yuan (88% of the main business income), which was less than that of the same period last year. The same period increased by 0.5 percentage points in the same period last year, of which cotton dyeing and printing enterprises accounted for 7.2% of the three fees, and the proportion of chemical fiber dyeing and printing enterprises was 10.4%. The cost and profit margins were 3.2%, 0.7 percentage points lower than that of the same period last year; the turnover rate of finished products was 4.9 times / year, a 31.7% decrease compared to the same period last year; the weekly turnover rate of accounts receivable was 2.5 times / year, which was reduced by 23.6%; the total assets turnover rate was 2.5 times per year, decreasing from the same period last year.

The 4-6 month is the critical period of cotton growth in Xinjiang. The cotton industrial base of Zhengshang, China Cotton Group Co., Ltd. (referred to as China cotton group) has recently entered Bachu, Xinjiang, to carry out knowledge training of cotton futures business and help cotton planting technology. Bachu county is the main cotton producing area in the southern Xinjiang. Cotton is the pillar industry in this county. In 2019, the cotton planting area is 970 thousand mu, and the annual output of lint is about 160 thousand tons, involving about 35 thousand farmers, and 27 cotton ginning plants and 74 cotton ginning lines in the County. It is understood that the on-site training will analyze the impact of the epidemic on the textile terminal garment industry, explain the operation mode of the cotton futures and derivatives market, focus on the cotton futures trading and delivery process, and pay attention to matters, and guide spot operators to make good risk management in the futures market.

According to Urumqi, Korla and other cotton regulatory bank feedback, nearly a week ago, Xinjiang cotton steam export volume steadily increased, compared with mid May has been restored, the main transportation of highway traffic is Shandong, Henan, Jiangsu, Hubei, Hebei, Fujian and other places. The export price of cotton was reduced by 15-30 yuan / ton, of which freight rates in Henan, Shandong, Hebei and other places were slightly larger. A cotton warehouse in Urumqi indicated that the number of Xinjiang cotton highways is relatively high in early June. On the 1-7 th of June, the transport volume of the cotton transported by the Xinjiang autonomous region will not be less than 50 thousand tons, while the railway volume of cotton production will remain stable, with limited space to go up or down.

From the website of Guangzhou Municipal People's government, in 2019, the Guangzhou municipal market supervision and Administration Bureau carried out supervision and spot checks on the quality of textile fabric products in the circulation field, and completed the 182 batch samples of 62 sales sites. The testing items for textile fabrics include fiber content, formaldehyde content, decomposable carcinogenic aromatic amine dyes, pH value and dry friction color fastness. A total of seven color fastness, water fastness and sweat stain fastness were tested. It was found that 37 batches of products did not meet the standard requirements. The main unqualified items were fiber content (28 batches), pH value (8 batches) and dry rubbing fastness (1 batches).

In May 26th, Hengyi petrochemical, dongmi, responded to investors' questions at the Shenzhen Stock Exchange's interactive voucher. The company's controlling shareholder, Zhejiang Hengyi Group Co., Ltd. shares the Limited by Share Ltd of the Tong Kun group, which is mainly based on the expectation of the future development of the polyester industry and the core competitiveness of the polyester industry in the company, taking into account the historical low position of the petrochemical and chemical fiber board Valuation Department. 。 As of the first quarter of 2020, the ten largest shareholder of Tong Kun shares had 46051999 shares and 2.49% stake.

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