Global Textiles (08.03): This week's oil price trend is mostly bearish, as the new crown outbreak continues to pressure market demand, OPEC production increase in August is imminent.

Epidemic report

According to Worldometers real-time statistics, as of 04:43 Beijing time on August 3, the global new crown virus confirmed cases of 18.16 million cases, new 157566, deaths of 690000 cases, new 3175 cases. Among them, 4.8 million cases of new coronavirus were confirmed in the United States, with 39805 new cases, and 158000 deaths, with 348 new cases. The number of countries with more than 100000 confirmed cases in the world has increased to 25. The order from most to least is the United States, Brazil, India, Russia, South Africa, Mexico, Peru, Chile, Spain, Iran, Colombia, the United Kingdom, Pakistan, Saudi Arabia, Italy, Bangladesh, Turkey, Germany, Argentina, France, Iraq, Canada, Indonesia, Qatar and the Philippines. The Philippines is the latest country to have more than 100000 cases, with 103185 cases. At present, the number of confirmed cases in Egypt and Kazakhstan has exceeded 90000, reporting 94316 and 91593 cases respectively.

Quote Briefing

1) According to the weekly financial market survey released by FX168 on August 1, most analysts and traders are bearish on the outlook for WIT crude oil next week. Looking back on July, international oil prices basically maintained a narrow range of volatility, with little overall volatility, with a monthly range of less than 10%, which is extremely rare. The severe deterioration of the new crown epidemic in the United States, Brazil, India and other countries has worried the market about the outlook for demand. OPEC + decided to cut the scale of crude oil production reduction from August, putting pressure on oil prices. On the other hand, some economic data show that the global economy has passed the worst period. The US crude oil production cut in May hit a record, and the US dollar plunged to a new low of more than two years, providing support for oil prices. August crude oil trend, mainly facing investor concerns that the continued development of the U.S. new crown epidemic will pressure demand recovery. The expiration of OPEC's production reduction agreement in August also caused the market to worry about the recurrence of the crude oil supply and demand balance crisis. According to OPEC's production cut agreement with non-member countries such as Russia, OPEC will resume global oil supply of 2 million barrels a day. Without strong data support, crude oil may be difficult to keep the 40 mark this week. This week's focus: Tuesday, the next day, 04:30 U.S. API crude oil inventory changes for the week ending July 31. Wednesday 22:30 U. S. EIA crude oil inventory changes for the week ending July 31. According to CBS News, the United States will hold a general election on November 3.

2) Recently, the traditional market of China Light Textile City summer fabric transactions continued to decline, the overall market to polyester filament-based summer fabric transactions continued to fall, prices fell steadily. Autumn women's clothing category spray woven fashion fabrics, knitted fashion fabrics hanging sample listing increased, and the listing of styles increased, the volume of local push up, the price is basically stable. Due to the decline in thin fabric transactions in summer, the overall market volume of autumn fabrics is limited, resulting in the overall market turnover is still insufficient.

3) According to Business News, in the 30th week of 2020 (7.27-7.31) commodity prices rose in the textile sector month-on-month rise of a total of 7 commodities, the top 3 commodities were raw silk (1.66 percent), polyester FDY(1.19 percent), PTA(0.88 percent). There were four types of goods that fell month-on-month, with the top three falling products being polyester yarn (-1.25%), nylon POY(-0.76%) and nylon DTY(-0.43%). Both were up or down 0.19 per cent for the week. The textile index was 686 points on August 2, unchanged from yesterday, predicting today's average trend: 685.615. August 2 PTA, polyester staple fiber, cotton yarn 21S, viscose staple fiber, nylon, spandex, lint commodity index was 35.00, the same as yesterday.

Global Focus

1) Saudi Arabia may lower the official price of crude oil sold to Asia in September.

Saudi Arabia may lower the official price of crude oil sold in Asia in September as benchmark crude oil prices in the Middle East fall and refining margins are weak, according to Sinopec News Network, citing Reuters. It is expected that the official selling price of Arabian light crude oil will decrease by 0.61 US dollars/barrel in September, and the forecast fluctuation range is between 20 cents and 1 US dollar. The official selling price of Saudi crude oil is usually released around the 5th of each month, setting the stage for crude oil price movements in Iran, Kuwait and Iraq, affecting more than 12 million barrels per day of crude oil shipped to Asia.

2) Revenue from conversion masks surged, Champion to the strong performance of the parent company's latest quarterly report in HanesBrands.

HanesBrands, the parent company of Chaozhou Champion and the US underwear and sports and leisure clothing manufacturer, released key financial data for the second quarter (as of June 27) on Thursday. Profits increased HanesBrands second-quarter sales fell but were still higher than expected as production lines shifted to personal protective equipment such as masks and protective clothing as soon as possible, and sales of comfortable casual clothing increased in the outbreak.

3) Reorganization ushered in the first big bar of the company's plan to terminate the cooperative subsidiary.

On July 30, Esprit Global Holdings Co., Ltd. announced the termination of the joint venture company and will terminate the establishment of a cooperative subsidiary with Mu Shang Group. The announcement stated that according to the joint venture agreement between Wancheng Resources (an indirect wholly-owned subsidiary of Esprit) and Mushant Group dated December 2, 2019, Mushant Group is responsible for two (2) months after signing the joint venture agreement. Complete the formal establishment of the joint venture company and obtain a business license. However, on the date of this announcement, the Mulsanne Group failed to establish a joint venture and thus seriously violated the terms of the joint venture agreement. Wancheng Resources, through its legal counsel, has sent a notice of termination to Mushan Group dated July 30, 2020 to terminate the Joint Venture Agreement with immediate effect.

4) Miyake's men's clothing brand announced that it will terminate operations.

According to a report by People's Daily Online in Tokyo on July 28, the men's clothing brand "ISSEY MIYAKE MEN" under the Japanese brand ISSEY MIYAKE (Issey Miyake) will terminate its operations in the autumn and winter of 2020-2021, and its stores across Japan will be closed one after another after the end of the autumn and winter of 2020-2021. Issey Miyake is currently adjusting its internal related systems.

Data Release

Economic Operation Report Card of Textile Industry in the First Half of the Year

In the first half of the year, the prosperity of the textile industry rebounded significantly, and the decline in production steadily narrowed. From January to June, the added value of the textile industry above designated size decreased by 6.7 year-on-year, the output of major categories of products generally declined, and the output of non-woven fabrics increased. In the second quarter, the domestic demand market continued to recover. The retail sales of clothing, shoes, hats, and knitwear products above the national quota decreased by 19.6 year-on-year. The retail sales of online wear products across the country basically returned to the same period last year in June. In the first half of the year, the export growth rate turned from negative to positive. The export value of China's textile and clothing was 130.8 billion billion US dollars, up 1.9 percent year on year. China's exports of masks and other epidemic prevention materials to Europe and the United States have expanded, and the pressure on clothing exports is still prominent. Exports to the three traditional markets of the United States, Japan and the European Union have improved significantly. Due to the sluggish consumption in the international terminal market, emerging export markets such as Southeast Asia and Africa have reduced their demand for intermediate products in the industrial chain. From January to June, China's textile and clothing exports to countries along the "the belt and road" decreased by 12.2.

Quality improvement pressure is still large. In the first half of the year, 33000 textile enterprises above designated size nationwide achieved a cumulative operating income of 1926.07 billion billion yuan, a year-on-year decrease of 16.4; realized a total profit of 73.1 billion billion yuan, a year-on-year decrease of 19%. Due to the significant increase in operating pressure, the operating quality of textile enterprises has declined. From June to June, the loss of textile enterprises above designated size nationwide reached 32.6, and the loss of loss-making enterprises increased by 50.2; the decline in investment was significantly narrowed, due to the impact of the epidemic, the development confidence of textile enterprises is obviously insufficient, and the investment scale of the whole industrial chain shows a downward trend. Investment in the textile industry, chemical fiber industry and clothing industry decreased by 22.4, 16.9 and 37.9 respectively compared with the same period last year. In terms of regions, investment growth in the central and western regions such as Hubei, Anhui and Henan Province is weak, while investment in the eastern region is divided. Investment in clothing and chemical fiber industry increased year-on-year in Zhejiang Province from January to June, but investment in clothing industry in Jiangsu, Shandong and Guangdong provinces decreased year-on-on-year.

risk early warning

Yellow Warning! Typhoon "Hagupit" strengthened into a severe tropical storm and made landfall in Zhejiang tonight.

According to the China Weather Network, the Central Meteorological Observatory issued a typhoon yellow warning at 06:00 on August 3: this year's No. 4 typhoon "Hagabi" has been strengthened from tropical storm level to strong tropical storm level on the morning of the 3rd. At 5 o'clock in the morning, its center is located on the eastern surface of Taiwan, about 460 kilometers southeast of Cangnan County, Zhejiang Province, which is 24.5 degrees north latitude and 123.6 degrees east longitude. The maximum wind force near the center is 10 (25 m/s), the lowest pressure in the center is 98 8百帕, and the radius of the seven-level wind circle is 150-230 kilometers. It is expected that "Hagupit" will move to the northwest at a speed of 20-25 kilometers per hour, and its intensity will continue to increase, reaching the strongest tropical storm level or typhoon level (30-35 m/s, 11-12 Level), and will make landfall along the coast from Wenling to Cangnan in Zhejiang from the night of the 3rd to the early morning of the 4th (severe tropical storm level, 10-11, 25-30 m/s). After landing will gradually turn to the northerly direction of movement, the intensity gradually weakened.