Sino US Trade And Cotton Textile Market (5.15-5.21)

Recent news

In May 8, 2020, the United States Trade Representative Office (USTR) announced the fourth batch of product exclusions under the list of $300 billion plus tariff products, adding 8 items to exclude products, and revising 1 historical excluded product descriptions, including 1 categories of textile and garment products (completely excluded). The excluded products will no longer be subject to a 7.5% tariff when they export to the United States.

In 2020 1-3, the United States imported 19 billion 840 million dollars of clothing, down 11.5% compared with the same period last year, and imports from China were 3 billion 880 million dollars, down 40.7% from the same period last year. China accounted for 19.6% of the United States imported clothing, ranking first, down 9.6 percentage points from the same period. According to the General Administration of Customs of China, in the first quarter of 2020, China's exports of cotton textiles and clothing to the United States amounted to US $1 billion 520 million, down 41.1% compared with the same period last year. The trade volume of cotton textiles and clothing imported from the United States was 11 million 20 thousand US dollars, down 46.8% compared to the same period last year.

Recently, some cotton traders reflected the increase in the number of customs clearance of 2019/2020 bonded cotton. On the one hand, in Europe and the United States, the economy and the Fed cut interest rates one after another. The US government, through fiscal stimulus, has rebounded sharply in the domestic financial and stock markets, and commodity futures have entered a recovery channel. On the other hand, the appreciation of the renminbi has led to the decline in the cost of US cotton imports, and the spinning enterprises and traders have chosen to move. In May, the Sino US trade representatives communicated effectively and promoted the appreciation of the renminbi.

Cotton textile market

This week, domestic and foreign cotton spot prices rose overall, cotton yarn futures prices were significantly warmer, spot prices remained stable. On the 21 day, Zheng cotton's main contract settlement price was 11795, an increase of 280 yuan / ton compared with the same period last week. On the same day, cotton yarn main contract settlement price was 19370, an increase of 545 yuan / ton compared with the same period last week, and the main contract of the US cotton futures rose 1.8 cents / pound compared with the same period last week. On the spot, on the 21 day, the cotton grade 3128B cotton price index was more optimistic than last week's price, rising by 280 yuan / ton, and the C32S yarn price index remained stable.