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    Short Term Export Data To Good And Difficult To Support Zheng Cotton Rise

    2019/2/18 19:51:00 36

    Zheng Cotton

    In February 14th, China's textile and garment exports met with good news again.

    China Customs data show that in January 2019, China's textile and clothing exports amounted to 25 billion 63 million US dollars, an increase of 8.42% over the same period, an increase of 8.47% over the same period last year.

    This is the first month of 2019, China's textile and garment exports have a good start, far higher than the average growth rate in 2018.

    This is undoubtedly a good news for the cotton textile industry, which is under repeated negotiations between China and the United States, and this growth is absolutely unexpected.

    Can export data be beneficial to Zheng cotton?



    From these two days, Zheng cotton's weak fluctuations showed that such data did not bring positive benefits to them.

    According to relevant media analysis, in the case of the global economic and trade situation is not optimistic, especially in the Sino US trade negotiations are still in a sensitive period of uncertainty, the rapid growth of foreign trade is probably due to the "scramble for export" before the deadline for us to impose tariffs on China in March 1st.

    In fact, how to avoid speculation for the time being, but the growth of export data is indeed dazzling. The data in February deserve more attention.



    According to the GDP growth targets announced by the provinces just now, most regions have lowered their growth targets, of which only Shandong, Shanxi and Inner Mongolia have set GDP growth targets higher than in 2018.

    In view of this, in the period of adjustment of the national economic growth speed, the growth of consumption demand will continue to be more difficult than last year, and at most it will remain stable.

    Under such circumstances, cotton consumption is hard to grow significantly. In the context of the increase in output of Xinjiang cotton in 2018, the uplink trend of cotton is still under great pressure unless the fundamentals of supply and demand have changed significantly.



    Therefore, when the national economy is changing from high growth to steady growth, if the short-term export data show good performance, it is difficult to support Zheng cotton's rise.

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