Sino US Trade And Cotton Textile Market Observation (2.28-3.5)

This week, the market price of cotton and cotton yarn picked up slightly after a series of subsidence last Monday. The development of the new crown disease has become an important factor affecting the price trend of China and the United States. Under this influence, the cotton price has increased, and the cotton basket has experienced the first suspension.

Review of important news

The reserve cotton wheel has been suspended for the first time. In March 1st, the national cotton trading market issued a notice on the suspension of New Zealand's cotton rotation Trading (No. fifth in 2019). Due to the difference between domestic and foreign cotton prices, it has been over 800 yuan / ton for three consecutive working days, and the New Zealand cotton trading round began to suspend in March 2nd. In March 4th, the national cotton trading market issued a circular on resuming the incoming trading of New Territories cotton (No. sixth in 2019), and restarted the cotton trading.

On March 2nd, the State Department announced that since March 13th, restrictions on the number of Chinese employees in 5 Chinese media have been listed as "foreign missions". In response, China's Ministry of Foreign Affairs spokesman said that under the current Sino US relations, the US side's move will bring serious negative effects and damage to bilateral relations. We urge the US side to change its course and correct its mistakes immediately, and China reserves the right to respond and take measures.

Market dynamics

February 28th -3 5, market prices began to rise slightly from the low. In the futures market, Zheng cotton futures closed down in February 28th, and ICE cotton fell to nearly eight and a half years low, and then rebounded slightly from this week. The domestic main cotton contract (CF2005) March 5th settlement price was 12695 yuan / ton, up 5 yuan / ton compared with the same period last week; the US cotton futures (ICE2005), the local settlement price in March 4th was 62.98 cents / pound, and the settlement price this week dropped 1.5 cents / pound compared with last week. The Zhengzhou cotton yarn main contract (CY2005) settlement price in March 5th was 20985 yuan / ton, up 225 yuan / ton compared with the same period. From the domestic spot market, in March 5th, the domestic 3128B cotton price index was 13075 yuan / ton, and the 32 cotton combed yarn price index (CY C32S) was 20650 yuan / ton, which rose from last week.

　　 In March, the domestic cotton textile enterprises resumed production and resumed production speeded up, and the order recovery amount of cotton textile enterprises was around 70%. Large enterprises in Shandong and Jiangsu and Zhejiang provinces have better orders, with orders reaching more than 80% of normal level, and export orders recovering slightly slower, basically returning to 50%-80%'s range. With the gradual recovery of the industrial chain and smooth circulation, the order recovery volume will continue to improve, and the demand for raw materials for cotton textile enterprises will increase. At present, about 90% of the chemical fiber enterprises have been started, and the raw materials for cotton spinning are more abundant. Xinjiang cotton is also gradually recovering from transportation in Xinjiang, so as to ensure the demand for cotton for textile enterprises.