Market Analysis: Sino US Trade And Cotton Textile Market Observation

In the last week of July, the price trend of domestic cotton and cotton yarn futures market showed a "W" shape, and the 30 day price rebound was more obvious; the price of American cotton futures showed an obvious decline first and then a gradual recovery. The spot market price is relatively stable, the average transaction price of reserve cotton has increased, and the transaction rate is always 100%.

Key news review

According to the data of the General Administration of customs, in June 2020, China's cotton import volume was 90300 tons, with a month on month increase of 28.9%; the export volume of textile and clothing was US $29.03 billion, with a year-on-year increase of 17.8%, of which the textile export was US $16.16 billion, with a year-on-year increase of 56.7%, and the clothing export of $12.87 billion, a year-on-year decrease of 10.3%. In June 2020, China's cotton yarn import volume was 150000 tons, a year-on-year decrease of 6.5%. In the first half of 2020, the cumulative import of cotton yarn was 860000 tons, a year-on-year decrease of 16.3%.

On July 24, the Chinese Ministry of foreign affairs informed the US side to close the US Consulate General in Chengdu. A foreign ministry spokesman said that China's move is a legitimate and necessary response to a series of unreasonable acts of the United States, in line with international law and basic norms of international relations, and in line with diplomatic practices. The responsibility for the current situation between China and the United States lies entirely with the United States, and urges the United States to immediately correct its mistakes and create the necessary conditions for the return of bilateral relations to the track of normal development.

Market price dynamics

From July 24 to 30, after a series of fluctuations, the futures market price returned to the level of a week ago, and the spot market reaction slightly lagged behind. In terms of futures, on July 30, the settlement price of domestic main contract of Zheng cotton (CF2009) was 12105 yuan / ton, which was 5 yuan / ton lower than that of last Thursday; the settlement price of cotton yarn main contract (cy2009) was 19220 yuan / ton, 65 yuan / ton higher than the settlement price of the same period last week; on July 29, the settlement price of main contract of American Cotton Futures (ice2012) was 61.61 cents / pound, with a slight drop. From the domestic spot market, on July 30, the domestic price index of 3128b cotton was 12425 yuan / ton, and the price index of 32 pure cotton combed yarn was 18535 yuan / ton, which remained at the level of last weekend.