Sino US Trade And Cotton Textile Market Observation (5.22-5.28)

In May 22nd -28, the spot market price fluctuated little as a whole last week, and the domestic cotton textile market showed a slight warming trend.

Review of important news

On May 22nd, the Commerce Department announced that a total of 33 Chinese companies and institutions would be included in the list of export control entities. Cotton textile enterprises Akesu Huafu color spinning Co., Ltd. ranked among them. After that, the export, re export and domestic transfer of related items in the United States will be regulated by the US Export Control Act (EAR), requiring additional licensing or limiting the majority of license exceptions to continue the above actions.

In May 24th, Huafu fashion Limited by Share Ltd issued four announcements of its subsidiary subsidiary, Akesu Huafu color spinning Co., Ltd., which was listed in the list of export control entities by the US Department of Commerce. The announcement objected to politicizing the industry, and said that Akesu Huafu served in the domestic market. Its raw materials, equipment and technology could avoid products originating from the United States and was not included in the entity list. It also had no influence on its daily operation. Meanwhile, since its establishment, Akesu Huafu has faithfully fulfilled its social responsibilities, complied with relevant laws and regulations, followed commercial codes of conduct and respected members. The right to work has been certified by many social responsibility agencies at home and abroad.

According to the General Administration of customs data, the number of cotton imports in China in April 2020 was 124 thousand and 800 tons, down 37.9% from the same period, down 30.6% from the same period last year, of which the proportion of US cotton imports returned to the first place, reaching 70 thousand and 800 tons, and the average import price was 1847 US dollars / ton, up 74 US dollars compared with March, or 4.2%, down 1.3% from the same period last year. In the first four months of 2020, 738 thousand and 100 tons of cotton were imported, down 12.3% from the same period last year.

Market price dynamics

On May 22nd -28, the market price showed a trend of rising first and then decreasing. Futures market, domestic cotton main contract (CF2009) May 28th settlement price of 11560 yuan / ton, compared with last Thursday's settlement price fell 235 yuan / ton; American Cotton Futures (ICE2007), May 27th settlement price of 58.38 cents / pound, with little change last week; Zhengzhou cotton yarn main contract (CY2009) May 28th settlement price of 19295 yuan / ton, compared with the same period decreased 75 yuan / ton. From the domestic spot market, in May 28th, the domestic 3128B cotton price index was 11910 yuan / ton, and the 32 cotton combed yarn price index of pure cotton was 18700 yuan / ton, little change.