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    Sino US Trade And Cotton Textile Market Observation

    2020/4/3 17:21:00 2

    Sino US TradeCotton Textile Market

    This week, the spot price of cotton and cotton yarns at home and abroad continued to be low, and global orders were sluggish, and export oriented enterprises were severely damaged.

    Review of important news

    On March 25th, the office of the United States Trade Representative (USTR) announced the third batch of product exclusionary notices under the list of $300 billion plus tariff products, which involved 12 excluded products, including 3 types of textile and apparel products. The excluded products will no longer be subject to a 7.5% tariff when they export to the United States. The products listed in the notice are valid for the period from September 1, 2019 to September 1, 2020.

    In March 31st, the reserve cotton wheel was officially closed in 2019. This year, the price limit of Xinjiang cotton has reached the highest 14197 yuan / ton in eighth weeks (19-23 January), and the cumulative transaction price was 13089 yuan / ton. The highest price was 14197 yuan / ton, and the lowest price was 11550 yuan / ton. During this round of entry, the average price of cotton price B index (CNCotton B) representing the 3128B cotton price is 13133 yuan / ton, which is basically the same as the average price of the incoming transaction.

    Market dynamics

    March 27th -4 2, cotton, cotton yarn futures market prices continue to decline. Futures market, April 2nd, the domestic cotton main contract (CF2009) settlement price of 10750 yuan / ton, compared with last Thursday fell 410 yuan / ton; American Cotton Futures (ICE2003) April 1st settlement price of 48.41 cents / pound, compared with last week fell by about 2.5 cents / pound; Zhengzhou cotton yarn main contract (CY2005) April 2nd settlement price of 17750 yuan / ton, compared with the same period fell 290 yuan / ton. In the domestic spot market, in April 2nd, the domestic 3128B cotton price index was 10730 yuan / ton, a decrease of 370 yuan / ton compared with the same period last week, and the price index of 32 cotton combed yarn was 19300 yuan / ton, down 300 yuan / ton compared with the same period last week.

       ??

    This week, domestic resumption and resumption of production continued to progress. However, with the spread of the epidemic in the world, orders for foreign orders were gradually lifted, and the number of new orders decreased significantly. In addition, there was also a situation of goods being stranded overseas or being rejected. Under the pressure of orders and capital turnover, cotton textile enterprises have become more cautious when purchasing raw materials, and have adopted the mode of buying and using. Some enterprises have actively transferred to the medical textiles ranks such as masks, and exported their products to foreign resources shortage areas. The China Cotton Association has suggested that due to the different product standards among different countries, the inspection standards must be agreed before the order is signed, so as to avoid unnecessary trade disputes.

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