Sino US Trade And Cotton Textile Market Observation (7.17-7.23)

Recent news

In 2020, China has taken various measures to suppress military and geopolitical exchanges with China. This week, Sino US relations once again entered a tense situation, and some media even called it the "cold war" between China and the United States. On the 16th, it was reported that the United States was considering a total ban on personnel from the United States. The so-called 20 companies in the United States will face sanctions on the so-called foreign textile companies in the United States on the pretext of being included in the list of human rights products, which will lead to the restrictions on the acquisition of these products by 11 companies in the United States. On the 22nd, the US side called for the closure of the Chinese Consulate General in Houston, which is an unprecedented escalation action taken by the United States to China, further pushing the Sino US trade relations to a negative side.

Recently, the office of the U.S. Trade Representative (USTR) has released a new list of tariff exemption. This is the seventh batch of products excluded from the US $300 billion tariff list, involving 64 items including cotton knitted women's robes, boot racks, plastic shells, foam pads, baby clothes and baby sleeping bags, bathrobes for men and women, blankets, oven gloves, etc.

Cotton textile market

Boosted by the news of a new round of fiscal stimulus, US stocks closed higher on Wednesday, and the Dow rose 0.6%. The domestic futures market also showed a "red" after the opening of the day. From the perspective of domestic cotton textile price index, cotton spot price fluctuated, Zhengzhou cotton and American cotton futures prices rose slightly, cotton yarn spot price was weak, cotton yarn futures price fluctuated downward. As of the 23rd, the settlement price of Zhengzhou cotton main contract was 12110 yuan / ton, slightly higher than that of the same period last week; on the same day, the settlement price of main contract of cotton yarn was 19155 yuan / ton, which was weak this week, with a decrease of 200 yuan / ton compared with the same period of last week; on the 22nd, the settlement price of main contract of American cotton futures was 62.54 US cents / pound, which slightly increased this week. On the spot, on the 23rd, the cotton price index of 3128b grade was 12440 yuan / ton, a slight increase of 90 yuan / ton compared with the same period last week, while the price index of c32s yarn on the same day was 18555 yuan / ton, slightly lower than that of the same period last week.