Monthly Report of Cotton Price Index of China in April

Affected by the pandemic in India and fringe market in April, the price of staple commodity strengthened. Furthermore, the disastrous weather in Xinjiang caused the worry of cotton output and quality, which led to price increase of spot goods. The international price of cotton went up continuously and the gap between domestic cotton price and overseas cotton price narrowed compared with the prices of last month. 

1. Comparative price rise of spot goods in China

After the continuous decrease in March, better situation of downstream demand and price rise of staple commodity, the cotton price recovered but not to the same level of the beginning of March. The cotton supply in domestic market was sufficient. The stock of raw materials of textile enterprises went down a little. The stock of middle and small-sized companies was generally low. Therefore, the demand for stock was better than last month. At the end of April, the china cotton index(CCIndex3128B) was RMB15,872/ton, increased by RMB 626/ton compared with last month. The monthly average price was RMB 15,566/ton, decreased by RMB382/ton compared with last month, rose by RMB 4,170/ton from a year earlier.

2. Price of long-staple cotton surges

Because of the price increase of staple commodity and fine staple cotton, the price of long-staple cotton surged in April. At the end of April, the closing cost of 137 cotton was RMB 22,700/ton, which increased by RMB 500/ton compared with last month. And it was RMB 6,828 higher than CCIndex at the same period and the spread was RMB 126 less compared with the spread at the end of last month.

3. The overall price of international cotton went up but went down at the end of April

The spot price and future price of international cotton vibrated and recovered in April. The spot price and future price went down because of the pandemic in India and gloomy export data of American cotton. The monthly price of import cotton in China was 92.03 cents/pound, which went down 1.82 cents/pound compared with March. At the end of April, the price was 94.43 cents/pound, which went up by 5.72 cents. With 1% import tax, the price was RMB 15,092/ton, which was RMB 780 less compared with domestic cotton spot price. The price difference between domestic cotton and international cotton was reduced by RMB 354 compared with last month.

4. The profit of textile industry showed good and price of many finished products increased

Affected by the pandemic in India, textile orders were starting to be placed back to China in April. Rate of operation was high and the sales was quite smooth. The profit was good and price of finished products of textile went up a little. To be specific, month-end price of veil(KC32S) was RMB 24,600/ton, which was RMB 300/ton more compared with March end. The combing(JC40S) was RMB 28,660/ton, which was RMB 60/ton more. Polyester staple fiber was RMB 6,900/ton, which was RMB 150/ton higher than March-end price. Viscose staple fiber was RMB 14,200/ton, which was RMB 1,000 lower than March-end price.