Textile And Clothing Import And Export Growth Situation Has Not Changed Cotton Price Decline

Recently, the China Textile Import and Export Chamber of Commerce announced textile and garment import and export data at a conference in Shanghai. In 2018, China's textile and apparel exports amounted to 276 billion 730 million US dollars, an increase of 3.7% over the previous year.

Among them, textile exports amounted to $119 billion 100 million, an increase of 8.1% over the previous year, and clothing exports of $157 billion 630 million, up 0.3% from the same period last year.

In 2018, China's textile and apparel exports to the three traditional markets of the European Union, the United States and Japan maintained an increase of 1.5%, 8% and 2.7% respectively.

The export market along the "one belt and one road" has been growing for three consecutive years, an increase of 5.3%.

The above data show that China's textile and garment export market has not significantly shrunk, although the growth rate has declined, but still maintained a steady growth trend.

As one of the industry's people, it is not easy to understand such achievements. Especially after the Sino US trade frictions "grey rhinoceros", the downstream textile and garment industry is not easy to develop.

Despite the ups and down, the Sino US talks have made great progress.

Although the profits continued, cotton prices failed to usher in a wave of expectations, but maintained the form of interval fluctuations.

Of course, this is related to the abundant spot resources and adequate supply, but on the other hand, the main contradiction between the rise and fall of cotton prices is not the end of consumption, but at the supply side, only large fluctuations in the fundamentals of supply can lead to a big market for cotton prices.

For cotton, the demand for downstream consumption is stable all year round, basically keeping the pace of steady growth. This indicates that cotton demand is hard to make big changes. Under such circumstances, it is hard to expect consumption to exert greater influence on cotton prices.

It has always been that the decline in upstream production has led to a surge in cotton prices, and few have seen the increase in downstream consumption to increase cotton prices.

This shows that despite the slight increase in the import and export of textile and clothing in the lower reaches, the cotton price remains low.

Including the recent profits and bad news, all are centered around the supply side. Therefore, I believe that the focus of future cotton prices is on the core of the supply side, while the consumer side is also important, but it still needs to be weaker.