Epidemic report
According to real-time statistics from Worldometers, as of 07:11 on October 29th, Beijing time, there were 44.72 million confirmed cases of the new coronavirus worldwide, 489,328 new cases, 1.17 million deaths, and 6,952 new cases. There are 48 countries with more than 100,000 confirmed cases worldwide. In addition, Japan, Ethiopia, Honduras, Belarus and Venezuela have confirmed more than 90,000 cases. As of 07:10 on October 29, Beijing time, the number of confirmed cases of the new coronavirus in the United States reached 9.11 million, with an increase of 75,080.
Market briefing
1) Recently, both API and EIA in the United States have announced that crude oil inventories have increased significantly, superimposed on the surge in the number of new crown cases and the re-enforcement of the lockdown in Europe. Risk aversion caused the US dollar to rise on Wednesday to a record high in more than a week, which also put heavy pressure on oil prices. International oil prices closed sharply on Wednesday: US WTI crude oil futures in December closed down 2.18 US dollars, or 5.51%, to 37.39 US dollars per barrel, the lowest since October 2; Brent crude oil January futures closed down 2.08 US dollars, or 5.05 %, reported 39.12 US dollars / barrel. However, the market is also actively restoring the situation in order to stabilize sentiment. In order to combat the new crown epidemic, the EU has proposed new tax and trade measures to fight the spread of the epidemic. As the U.S. election approaches, traders are preparing for market volatility. Analysts expect that if Biden is elected, it will ease trade tensions with traditional allies such as Europe and Canada. This should improve overall market sentiment and suppress the dollar. The status as a safe-haven currency.
2) On October 28, the production and sales of polyester filaments continued to be cold. Near the end of the month, many buyers had prepared the goods in the early stage, and the willingness to inquire was not strong. As of 4 pm, the mainstream production and sales of the factory were around 40%. The production and sales of polyester filaments in Jiangsu and Zhejiang are estimated to be Forty to fifty percent. The overall decline was 1% from the previous day, and the higher production and sales reached 100%. The overall gap between production and sales was flat. The production and sales of polyester staple fiber are relatively indifferent. As of 4pm, the overall production and sales of the factory were around 30%, a slight increase of 2.88% from the previous day, and the higher production and sales reached 80%, which was generally flat.
3) According to the price monitoring of the business agency, on October 28, 2021, the list of commodity price fluctuations in the textile sector increased from the previous month to 1 commodity, with lint (0.02%) rising. There are 0 kinds of commodities that have dropped from the previous month. The average daily increase and decrease was 0%. On October 28, the textile index was 731 points, which was the same as yesterday and worse than expected. It is predicted that today’s index will slightly increase to 731.008 points.
4) In the near future, the probability of a cold winter this year is relatively high, coupled with the boost of the market in the later period of “Double Eleven”, so the “Silver Ten” after the epidemic appears to be extremely busy. The traditional market of China Textile City is knitting fleece in autumn and winter. Spot listings continued to increase, and the types of mobile sales continued to grow, and the overall market turnover rose from the previous month. In the autumn and winter market of China Textile City, the listed varieties of polyester-spandex elastic fabrics and polyester-spandex elastic composite fabrics partially increased, and the spot market volume increased partially, and the spot transaction volume increased partially. The overall market volume fluctuated higher than the previous period, and the price rose month-on-month.
Global focus
1) US media survey: Chinese consumers do not like to buy foreign goods this year
According to CNBC News on the 28th, as the November Shopping Festival approaches, a survey by global consulting firm AlixPartners shows that Chinese consumers will have stronger purchasing power than before, and 66% of them will buy domestic products. Brands, 57% plan to reduce their purchases of American brands this year, and 39% will reduce their purchases of European brands. From September 30th to October 6th, Arrow Platinum conducted a survey of 2029 Chinese adult consumers. The results showed that as the Chinese economy recovers from the new crown epidemic, the overall spending of Chinese consumers this year will exceed the previous . 39% of Chinese consumers plan to spend more on Double Eleven this year than last year, while only 15% plan to cut spending.
2) Mongolia will cut tariffs on cotton yarn, chemical fiber and other tax items
According to the Ministry of Commerce, on October 23, the secretariat of the Asia-Pacific Trade Agreement (hereinafter referred to as the “Agreement”) notified all member parties that Mongolia had deposited a letter of acceptance with ESCAP, completed the “Agreement” accession procedures, and planned to Mutual implementation of tariff reduction arrangements with relevant members on January 1, 2021. According to the tariff reduction arrangement, Mongolia will reduce tariffs on 366 tax items, mainly related to aquatic products, vegetables and fruits, animal and vegetable oils, mineral products, chemicals, wood, cotton yarn, chemical fibers, machinery products, transportation equipment, etc., with an average tax reduction The amplitude is 24.2%. At the same time, Mongolia can enjoy the existing tariff reduction arrangements of China and other members.
3) The EU continues to temporarily exempt imported medical equipment and personal protective equipment from tariffs
The European Union announced on the 28th that it will continue to temporarily exempt imported medical equipment and personal protective equipment from tariffs and value-added taxes, thereby reducing the cost of masks, ventilators and other materials entering the EU market, and helping member states respond to the new crown pneumonia epidemic. The European Commission stated in an announcement on the same day that the current number of new coronavirus infections within the EU is increasing, and member states still need to import medical equipment and personal protective equipment to deal with the epidemic. For this reason, the EU decided to extend the validity of the existing tax exemption measures to April 30 next year. day.
4) China’s first rapid textile intellectual property rights protection center in Keqiao
According to the Zhejiang Daily, on October 26, the State Intellectual Property Office issued a document formally agreeing to build China’s Shaoxing Keqiao (Textile) Intellectual Property Rights Rapid Protection Center to carry out rapid protection of intellectual property rights for the textile industry. This is the first rapid intellectual property rights protection center in Shaoxing City and the country’s first rapid intellectual property rights protection center for the textile industry. In the future, the “Quick Maintenance Center” will integrate functions such as rapid rights protection, rapid pre-examination of pattern design patents, and intellectual property public services to realize unified management and services for intellectual property rights such as copyrights, patents, trademarks, and trade secrets.
Industry Watch
The textile and apparel market returns to “coolness”, or will enter the stage of accumulation
Due to the outbreak of the epidemic in India, the epidemic in China has been effectively controlled, and production capacity has been significantly restored. In order to ensure the smooth progress of holiday promotions, European and American countries have transferred orders to China. The cold winter expectations brought by the superimposed La Niña effect and the bookings for domestic double eleven events have made the textile market blossom everywhere. At the same time, the price has been soaring. After two weeks of crazy skyrocketing, cotton yarn will be used as a product in the second half of this month. It means that the prices of various raw materials have gradually become “cool”, and the production and sales of textile raw materials have been relatively cold recently. The production and sales have remained at about 4-5%, indicating that the sharp increase in the previous period has caused resistance in the downstream, and the increase in prices has led to partial orders. In the “dead situation” where some manufacturers cannot issue, even if some manufacturers do and lose money, if the situation continues to stalemate, it is possible that the subsequent low-sell and low-sell orders will slowly unfold, and the market will be more chaotic by then. At present, in order to stabilize the market, manufacturers should continue their efforts to achieve destocking based on maintaining stability.