Weekly Report: Export Vibration around Spring Festival

The Customs statistics of February was released and according to which, export during that month vibrated due to Spring Festival. The export value in general reduced by 20.4% compared with January’s increase of 7.6%, among which apparel export valued 6.66 billion USD, 39.8% down over the month, and 37.1% less than last February; textile export valued 4.22 billion USD, 34.6% down over the month, and 28.4% less Y/Y. The large decline is the phenomenon usually seen during the month following Spring Festival, and export will restore to the normal level later after. The outlook of 2014 export is positive with recovering global economy and export supportive policy.
Last week (3rd -7th March), domestic textiles raw materials purchase was still dominated by reserve auction, which targeted at 124,400 ton, with 50,800 sold at transaction percentage of 40.8%. By 7th March, reserve trade closed by 645,800 ton, at transaction percentage of 36.7%. CC Index 3128B settled at 19,466 Yuan per ton by weekend, unchanged over the week.
As the state cotton purchase of 2013/14 season is about to close, the trading volume reduced continually. Last week, 113,360 ton of cotton was bought by reserve, 14.4% less over the week, comprising of 35,120 ton of Xinjiang cotton, 78,240 ton of inland cotton. By 7th March, total reserve purchase in 2013 season was 6.037 million ton, with 3.963 million ton via Xinjiang warehouses and 2.074 million to via inland warehouses. The purchase of seed cotton also came to its final phase, with reduced quality and quantity. According to CCA cotton processing branch survey, average buying price for 3128 equivalent in Hebei province was 8.36 Yuan per kilo, 0.04 Yuan down over the week; 8.42 Yuan in Shandong province, 0.03 Yuan down; and 8.73 Yuan in Henan, 0.03 Yuan up over the week.
As for import cotton, FC Index settled at 99.69 cent/lb., 2.28 cent up over the week.