Sino US Trade And Cotton Textile Market Observation (3.13-3.19)

This week, the price of cotton and cotton futures in the spot market continued to decline due to the impact of the new crown epidemic. The settlement price of the main contract between cotton and cotton yarn between China and the United States reached the lowest level since the Sino US trade friction.

Review of important news

According to the latest statistics of the General Administration of Customs of China, the export volume of textiles and clothing in China in 2020 1-2 was 29 billion 835 million US dollars, down 20% from the same period last year. Among them, exports of textiles (including textile yarns, fabrics and articles) amounted to US $13 billion 773 million, down 19.9% compared to the same period last year. Exports of garments (including garments and accessories) were US $16 billion 62 million, down 20% from the same period last year.

At the end of February 2020, the cotton association of China conducted a survey of cotton planting area in 12 provinces and municipalities in the mainland and Xinjiang autonomous region. The results showed that in 2020, the average area of cotton planting in China was 45 million 735 thousand and 700 mu, down 5.03% from the same period last year. Among them, the intended area of cotton planting in Xinjiang was 35 million 631 thousand and 900 mu, a decrease of 3.37% compared with the same period last year. The Yangtze River Basin was affected by the epidemic, and there were many factors affecting the cotton planting area. According to incomplete statistics, the area of cotton planting in the river basin was 4 million 449 thousand and 100 mu, down 9.93% from the same period last year. The agricultural production in the the Yellow River basin basically recovered and the cotton planting area was 5 million 267 thousand and 400 mu, down 10.99% from the same period last year.

In March 18th, the Chinese side adopted counter measures against the US side's actions to suppress Chinese media in the US. A spokesman for the Ministry of Foreign Affairs said that the move was aimed at urging the us to change its course, correct its mistakes and stop political suppression and unreasonable restrictions on the Chinese media. If the US side persists in its own way and makes mistakes, China will be forced to take further countermeasures.

Market dynamics

March 13th -3 19, the market prices continued to decline, 19, cotton and cotton yarn futures have been down. From the futures market, the domestic main cotton contract (CF2005) March 19th settlement price of 11260 yuan / ton, compared with the same period last week settlement price fell 920 yuan / ton; American Cotton Futures (ICE2005), local time March 18th settlement price is 56.64 cents / pound, the settlement price this week is about 3 cents lower than last week / pound; the Zhengzhou cotton yarn main contract (CY2005) March 19th settlement price is 18815 yuan / ton, compared with the same period last month decreased 1405 Yuan / ton. From the domestic spot market, in March 19th, the domestic 3128B cotton price index was 11560 yuan / ton, and the 32 cotton combed yarn price index (CY C32S) was 20030 yuan / ton, which decreased by 950 yuan / ton and 560 yuan / ton compared with the same period last week.

　　 This week, the domestic cotton textile enterprises resumed their work and resumed production, and the 90% enterprises had started smoothly. The capacity utilization rate was around 70%. The order recovery volume of cotton textile enterprises is over 80%, and small enterprises are around 60%. The globalization of the epidemic situation has greatly affected export orders, basically returning to 50% level. The pressure of export enterprises is larger than that of domestic enterprises. The downstream industry has been more active in production recovery, and the industrial chain has been improved. The domestic key textile and garment market has a market opening rate of nearly 90%, and circulation and sales links have been further opened up.