Industry off-season cotton prices continue to be under pressure
Domestic market: Recently, the progress of Xinjiang seed cotton procurement has accelerated. The northern Xinjiang seed cotton procurement is coming to an end, and the southern Xinjiang seed cotton procurement has also exceeded half. The procurement price has remained stable, and the reluctance of cotton farmers to sell has weakened. Cotton prices fell sharply in the early stage, and the bearish sentiment has been largely digested. As the acquisition progress accelerates, costs gradually solidify.
International market: The US Department of Agriculture's supply and demand forecast has increased global cotton production and inventory, reduced consumption, and coupled with the sharp drop in oil prices and the negative impact of international macro policies, ICE cotton has significantly declined. In the later stage, stimulated by the rebound in oil prices and positive weekly reports on US cotton exports, ICE cotton has slightly rebounded.
Demand market: The downstream pure cotton yarn market as a whole maintains a calm atmosphere, with prices continuing to decline, but the decline has slowed down. Cotton yarn inventory pressure is still significant, and textile companies have generally average purchasing power for cotton spot goods.
Market forecast: From the perspective of the industrial chain, the supply side of new cotton is gradually becoming loose, and downstream demand is difficult to improve. Under the pressure of cotton yarn inventory, the overall purchasing power of cotton spot is average. In the off-season atmosphere of the industry, domestic cotton prices may continue to be under pressure.
Nylon filament weak operating price slightly drops
Both cost and demand are weak, and the nylon filament market is operating weakly, with prices slightly declining. Recently, the market trend of caprolactam has been weakening; On the supply side, the factory is operating normally, with sufficient supply of goods, and the overall situation of oversupply is difficult to improve; Downstream demand is average, with 60-65% of downstream weaving continuing, resulting in average overall market shipments.
Weak cost support: Last week (November 6-12), the caprolactam market weakened and the price of caprolactam remained weak and stable. The market trend of crude oil and pure benzene is weak, with insufficient cost support. Downstream demand for procurement is weak, and the supply and demand side is weak. The market supply and demand are in a game, and the industry holds a bearish attitude. It is expected that the price of caprolactam will be weak in the short term and will continue to consolidate.
Supply and demand: Currently, the cost pressure on nylon filament is high, and the market industry operates at a breakeven rate with sufficient supply. The overall market is still in a state of oversupply, and the situation of weak terminal demand has not changed. Buyers are resistant to the increased price, and the speed of goods circulation needs to be improved. Downstream demand is average, with 60-65% of downstream weaving continuing, resulting in average overall market shipments.
Outlook for the future: The market for caprolactam, a raw material, is weak in the later stage. The inventory of nylon silk factories has increased narrowly, resulting in poor demand. Downstream stocking enthusiasm is limited, and the demand is not good. However, there is currently no maintenance plan for the nylon industry, and the supply of the nylon industry may increase. The supply-demand contradiction still exists. It is expected that the nylon filament will show a weak and narrow decline trend in the later stage.