Weekly Operation Of Sino US Trade And Cotton Textile Market (3.6~3.12)

Recent news:

In March 5th, the United States Trade Representative Office (USTR) released the first 300 billion US dollar product list under the list of Customs products. This excludes a total of 8 products, including 5 tax labels for textile and garment products. The excluded products will no longer be subject to a 301 tariff when they export to the United States. The validity of the excluded products specified in this notice is from September 1, 2019 to September 1, 2020. In August 20, 2019, the US Trade Representative Office (USTR) decided to levy a 10% tax on Chinese goods with an annual trade volume of about $300 billion. The additional duties of the products listed in the action list A came into effect on September 1, 2019. In August 30, 2019, USTR decided to raise the additional tax rate from 10% to 15%. In January 22, 2020, USTR decided to reduce the tax rate from 15% to 7.5%. Listing B has not yet been introduced.

In March 7th, the General Administration of Customs of China released trade data for 1-2 months in 2020. Due to the extension of the Spring Festival holidays and the outbreak of the new crown pneumonia, the foreign trade in the first two months has seen a significant decline. In terms of Renminbi, the total import and export volume of the whole country has decreased by 9.6%, of which exports have declined by 15.9% and imports have declined by 2.4%. From the data point of view, the impact of textile and clothing exports is greater than the overall trade in goods. In addition, the total trade volume between China and the United States dropped by 19.6%.

Cotton textile market:

Entering the March, cotton textile enterprises started to accelerate again. According to the statistics of China Cotton Association, the recovery rate reached over 80%, of which the cotton textile enterprises in Xinjiang began to reclaim in large quantities in the first week of March. In Guangdong, the opening rate of cotton textile enterprises increased with the opening of several main fabric markets.

Judging from the price of spot products related to cotton and textile products this week, the price is weakening and the rate of decline is accelerating. 12, cotton settlement price of the main contract was 12180 yuan / ton, compared with the previous day settlement price fell more than 200 yuan / ton, compared with the same period last week dropped 500 yuan / ton. The settlement price of cotton yarn main contract on the same day was 20220 yuan / ton, down more than 700 yuan / ton compared with last week. The spot market is also not optimistic. On the 12 day, the 3128B class cotton price index was 12510 yuan / ton, down by more than 500 yuan / ton compared with the same period last week, and the yarn price index on the same day was 20590 yuan / ton, a slight decrease compared with the same period last week. US cotton futures also showed weakness. The settlement price of 11 days was 61.55 cents / pound, which was close to 2 cents / pound compared with the same period last week.