Cotton Price Low Is Still Refreshing, 3.20% Lower Than That At The End Of Last Four Years

According to the statistics of business agency, as of March 24, the average price of domestic lint spot market was 11320 yuan / ton, down 13.66% from the beginning of the month, down 27.51% year on year. It has reached a new low since March 30, 2016, down 3.20% from the lowest point in 2016, which is also the lowest price since 2011 when the business club monitored the cotton price. Due to the outbreak of public health events in the world, the upgrading of multi-national protective measures, the blockade of borders, ports and so on, cotton market has a strong sense of bearishness. As cotton prices fall too fast, textile mills wait and see more and purchase less.

On the macro level, on March 23, the president of the International Monetary Fund (IMF) Georgieva predicted that the global economy would fall into negative growth in 2020, and the degree of recession would be at least equal to or even more serious than that of the financial crisis in 2008, with recovery expected in 2021. The crisis of textile supply chain has developed to a global scale, and the price of outer yarn has dropped, indicating that it is difficult to digest the inventory. On the other hand, the protection measures of many countries have been upgraded. As a domestic textile factory, it is worried that the government may require the enterprises to close down and stop production. The shutdown will be a fatal blow to the local textile industry, and the orders will be forced to be broken.