Sino US Trade And Cotton Textile Market Observation (4.10-4.16)

From April 10 to 16, the spot price of cotton and cotton yarn in China and the United States was relatively stable. Affected by the epidemic situation, the situation of international orders has not improved significantly, and the capacity utilization rate of China's cotton textile industry tends to continue to decline.

Key news review

On April 14, the new office of the State Council of the people's Republic of China held a press conference. Li Kuiwen, spokesman of the General Administration of customs and director of the Department of statistics and analysis, said that China's imports and exports rebounded in March, with a total value of 2.45 trillion yuan of foreign trade, a year-on-year decrease of 0.8%, and a decrease of 8.7 percentage points compared with January February. Among them, exports were 1.29 trillion yuan, down 3.5%; imports were 1.16 trillion yuan, an increase of 2.4%.

With the gradual implementation of the first stage economic and trade agreement between China and the United States, there have been some positive factors in bilateral trade and economic cooperation, especially the recent good growth momentum of some goods imported from the United States. However, it should also be noted that exports to the United States declined in the first quarter due to factors such as the new crown pneumonia epidemic and the extension of the Spring Festival holiday this year.

According to customs statistics, in the first quarter of 2020, the total value of Sino US trade was 668.01 billion yuan, down 18.3% year on year; among them, exports to the United States were 476.55 billion yuan, down 23.6%; imports from the United States were 191.46 billion yuan, down 1.3%. In terms of product types, in the first quarter of 2020, China imported 124000 tons of cotton from the United States, an increase of 43.5%, and a value of 1.59 billion yuan, an increase of 17%.

Market dynamics

Although the cotton prices in China and the United States rose slightly in April, cotton prices rose steadily in April. In the futures market, on April 16, the settlement price of Zhengzhou cotton main contract (CF2009) was 11380 yuan / ton, down 160 yuan / ton compared with last Thursday; the settlement price of American Cotton Futures (ice2007) on April 15 was 52.80 cents / pound, down about 0.6 cents / pound compared with the previous week; the settlement price of Zhengzhou cotton yarn main contract (cy2009) on April 16 was 18760 yuan / ton, down 225 yuan / ton compared with the same period last week. In the domestic spot market, the domestic 3128b cotton price index on April 16 was 11520 yuan / ton, down 160 yuan / ton compared with the same period last week, while the price index of 32 cotton carding yarn was 19140 yuan / ton, down 57 yuan / ton compared with the same period last week.

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Affected by prices and orders, cotton textile enterprises continue to be cautious when purchasing raw materials. In the past week, the inventory of raw materials has decreased, the inventory of products has increased, and the sales price has decreased. Under the influence of the epidemic, the vitality of the industry has been limited. In the current environment of global economic slowdown, countries should strengthen cooperation and pursue win-win results. The primary starting point is to overcome the epidemic situation and return to normal production and life as soon as possible, keep the market open, safeguard the multilateral trade system, and oppose protectionism. It is expected that under the same challenge, Sino US trade relations can reach a new level.