Sino US Trade And Cotton Textile Market Observation (9.9-9.13)

On September 9th -13, there was new news about the Sino US trade consultation process. In addition, with the arrival of the traditional market season, the spot market was in a steady recovery trend.

Review of important news

Following the escalation of Sino US trade frictions in August, this month, the two sides are scheduled to hold the thirteenth round of high-level Sino US economic and trade consultations in Washington at the beginning of October, and will strive for substantial progress. The working side of the two sides will conduct serious consultations in mid September, so as to make full preparations for the substantive progress of high-level consultations. The two sides agreed that joint efforts should be made to take practical actions to create favorable conditions for further consultations.

In September 11th, the Customs Tariff Commission of the State Council, in accordance with the procedures, first eliminated some commodities for the first batch of tariff products to the US and Canada, and implemented the elimination measures in two lists. The list does not contain textile clothing and related industry chain goods.

In September 13th, from the national development and Reform Commission and the Ministry of Commerce, it was informed that the US side has decided to adjust the tariff measures to be implemented in October 1st. China supports relevant enterprises to purchase a certain quantity of soybeans, pork and other agricultural products from the United States on the basis of market principles and WTO rules.

Market price dynamics

September 9th -13, from the futures market, the domestic main cotton contract (CF2001) September 12th settlement price of 12930 yuan / ton, compared with last Friday's settlement price fell 10 yuan / ton; Cotton Futures (ICE1912), September 13th settlement price of 62.28 cents / pound, compared with the same period rose 3.7 cents / pound; Zhengzhou cotton yarn main contract (CY2001) September 12th settlement price of 21130 yuan / ton, compared with last Friday settlement price rose 300 yuan / ton. From the domestic spot market, in September 12th, the domestic 3128B cotton price index was 12840 yuan / ton, the overall price rose by about 150 yuan / ton last week; the CY cotton price index (32 C32S) was 20180 yuan / ton, compared with last week, the whole price dropped by 35 yuan / ton, and the overall price was relatively stable. From the situation of the cotton reserve transaction, the weekly price was 12457 yuan / ton, up 122 yuan / ton compared with the previous week, the turnover rate was more than 99%, and the average price increase was more than 200 yuan / ton last week.

　　 With the arrival of the traditional peak season, and with the opening of Sino US measures, the situation of the industry has eased, and the inventory of enterprise products has begun to decrease. Since September 1st, the US tariffs on China's US products have not been affected. The known news is that after the US announced that tariffs on US $250 billion, which have already been effective, will be suspended from 25% to 30% in October 1st, and the two sides still have room to continue to sew.