Sino US Trade And Cotton Textile Market Observation (9.2-9.6)

This week, the United States began to impose tax increases on the first part of China's $300 billion tax increase list. According to statistics from relevant departments, the trade volume of China's textile and apparel products exported to the United States for the whole year is about 49 billion US dollars, of which about 7 billion US dollars are in the previous tax increase list (50 billion US dollars and 200 billion US dollars tax increase list), and about 42 billion US dollars are included in the 300 billion US tax increase list, including clothing and home textiles and other end textiles. According to the time node, the amount of tariffs added since September 1st is about $210 billion. Therefore, this round of tax increases has great impact on the export of terminal textile consumer goods.

On September 5th, a spokesman for the Ministry of Commerce said that the "thirteenth round" high-level consultations "strive for substantial progress" in early October can be seen as an optimistic expectation for the market.

From the perspective of the entire textile and garment market, the state of weak demand has not changed. Downstream terminal enterprises believe that with the implementation of the new round of Sino US trade tax increase policy, orders will not drop sharply in the short term, but by 2020, production orders may be facing a sharp shrinkage. The uncertainty of downstream production is even more important for upstream wait-and-see and conservative sentiment. At present, cotton textile enterprises should reduce the opening stage, keep low stock of raw materials, speed up the storage of gauze products as much as possible, and strengthen the control of capital risks.

Cotton and cotton yarn futures prices rose slightly this week, and some of the yarn spot prices lagged behind. The price of domestic cotton contract (CF2001) in September 6th was 12940 yuan / ton, and in the US cotton futures (ICE1912), the settlement price was 59.12 cents / pound in September 5th, and the price rose in the latter part of this week. The Zhengzhou cotton yarn main contract (CY2001) September 6th settlement price was 20830 yuan / ton. From the domestic spot market, in September 6th, the domestic 3128B cotton price index was 12780 yuan / ton, up 120 yuan / ton compared with last week, and the price index of pure cotton 32 CY C32S was 20200 yuan / ton, down 70 yuan / ton compared with last week.