Initial Conclusion Of Sino US Trade Agreement Cotton Textile Enterprises Cautiously Look After Cotton Market Trend

Late in December 13th, the Chinese side held a press conference to announce a heavy message: on the basis of equality and mutual respect, the text of the first stage economic and trade agreement between China and the United States has reached an agreement. The United States will phased out tariffs on China's products, so as to achieve a change in tariffs. When the news came out, the whole world breathed a sigh of relief, and quickly exploded the circle of friends of cotton and textile enterprises. We saw the hope of resolving Sino US economic and trade disputes. Through many understanding, cotton and textile enterprises generally have two sides to this message:

Pleased with the outcome of the agreement. Over the past year, Sino US trade friction has led to the disruption of textile exports, and the price of cotton and cotton yarn has declined sharply. The cotton enterprises have suffered serious losses and many enterprises have limited production and production, and even many small businesses have failed. The enterprises that are still in operation are also looking for survival in fear and trembling. Do cotton enterprises worry about the profit of the seed cotton? Textile enterprises worry about whether cotton yarn can be sold out? The business activities of enterprises bear the ideological burden and operating pressure of overweight. It can be said that Sino US trade friction seems to be hanging on the head of a cotton enterprise. It is a fear to everyone. What is the degree of escalation of Sino US trade frictions? There is no reliable answer to whether the two sides can reach a final agreement.

There was also a message of substantial results before, but no result. It's good news for a while, bad news for a while, and let the market fluctuate frequently. Now that there is a text agreement, though it is the first stage, the text agreement is more reliable than oral promise, and the heart of everyone has finally been put down. At least let everyone feel that the most difficult period for cotton and textile enterprises is over.

The outlook remains cautious. With the text agreement, it can only represent the business environment of the cotton involved enterprises. However, it is too early to say that the arrival of spring cotton and textile enterprises is coming. Because this is the first stage economic and trade agreement. The future trade negotiations between China and the United States will continue. There are still many uncertainties. There is still a way to go from the satisfactory ultimate agreement.

In the short term, although the text of the first stage economic and trade agreement has reached an agreement, it needs to be signed through the implementation of specific details, which requires a process. In particular, the current cotton and textile situation is still in the doldrums, upstream cotton supply exceeds demand, the downstream cotton yarn sales are not improving, the pressure on cotton inventory is not small, and with the Spring Festival approaching, the number of early holiday enterprises is increasing, and demand is decreasing.