Sino US Trade Friction Upgrade Lint, Yarn Market Performance Is Not Good.

This week, the escalation of Sino US trade frictions brought certain fluctuations to the domestic and foreign markets, and the performance of lint and yarn market was poor.

In May 9, 2019, the US government announced that since May 10, 2019, tariff rates on goods imported from China for 200 billion US dollars have been raised from 10% to 25%.

The US side's measures have led to a further escalation of Sino US trade frictions. China has to adjust tariff measures to some of its imports originating in the United States.

Since 0 o'clock in June 1, 2019, the tariff rate has been raised on the part of us merchandise which has been added to the tariff of $60 billion.

Under such a big bad news, the futures lint and yarn all fell sharply this week. Zheng cotton CF1909 contract closed at 13810 yuan / ton price for 14 days, and the total fall of two days was as high as 1400 yuan / ton. Although it rebounded in May 15th, it was hard to boost the spot market.

Affected by this, the spot lint market steadily fell.

Among them, the three level lint factory price in Hebei is 15200-15700 yuan / ton, the 300 yuan / ton of individual factories is high, the three factory lint price in Shandong area is 15300-15500 yuan / ton, and some factories are down 200 yuan / ton at high level.

Sino US trade friction escalation, textile import and export orders or affected, the market wait-and-see mood is strong, this week yarn market is not good, futures yarn prices fell sharply, Zhengzhou futures cotton yarn main contract in May 14th at 22165 yuan / ton price limit, the two consecutive day fell by 2430 yuan / ton, although on Wednesday, although the rebound, but the rebound intensity is limited, the market depressed mood is permeated.

Spot yarn quotes are mostly stable, and prices in some areas are down compared with last week.

Among them, Shandong Liaocheng area Pu comb 40 yarn quoted price in 25300 yuan / ton, compared with last week fell 300 yuan / ton, Shandong Weifang ring spinning 32 quoted price 22500 yuan / ton, compared with last week fell 700 yuan / ton, other regions quotes are stable, but the actual paction price can be discussed, the market shipments slow.

Due to the limited seed cotton resources at present, the running rate of the cotton ginning plant is low, and it has certain support for the lint market.

The old customers of some textile factories are stable, orders are acceptable, product inventory is at a low level, and there is no pressure on shipment to support the spot market of cotton yarn.

The optimistic expectation of Sino US trade frictions will be rekindled, and the market will see a glimmer of hope in pessimism. Cotton and textile industries will also respond calmly to their economic difficulties with their unique business strategies.