In the past one year, transactions of cotton yarn futures were not active and the participation was not high. Zhengzhou Commodity Exchange published the revision of cotton yarn futures delivery rules on Mar 4. According to the revision, delivery subjects of cotton yarn futures expanded and the quality of benchmark product also changed significantly.
Firstly, the indexes of benchmark delivery product of cotton yarn futures were adjusted, especially the actual twist factor. The product allowed to be delivery changed to the cotton yarn for weaving from the one for knitting and the one for weaving. And other indexes moved closer to those most cotton yarn mills can achieve and downstream weavers can accept.
Secondly, warehouse delivery was also allowed besides previous delivery factory. In addition, delivery factories in Hubei and Hebei were added, increasing market participants of cotton yarn futures and improving the trading activeness.
Thirdly, the definition and inspection method of foreign fiber content changed. The machine testing was used instead of original manual testing, which was more accurate.
Besides, the revision of delivery rules also changed the standard of substitute and premium.
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In the meantime, the validity term of cotton yarn futures warehouse receipts were shortened. The concentrated cancellation time changed from Feb, Jun and Oct to Feb, Apr, Jun, Aug, Oct and Dec.
The open interest limit was also lowered. The revision above will be implemented since contracts for Oct’19.
It is predicted that cotton yarn futures will be more active amid the further improvement of delivery rules, especially traders included which can hedge through cotton yarn futures directly. According to CCF Group, most cotton yarn mills or traders hedge through ZCE cotton futures. Taking example by mature on-call transactions of cotton futures, the financial characteristics of cotton yarn will improve.
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China's overall economic situation improved in the Jan-Feb period, said Ning Jizhe, head of the National Bureau of Statistics, on Tuesday.
"From the beginning of the year, the Chinese economy has been stable and has shown improving momentum," Ning said during an interview in the so-called "minister's passage" at the annual meetings of the national legislature and the top political advisory body.
Ning said his remarks were based on current available economic data of the Jan-Feb period, while the NBS is still working on the comprehensive data, which will be released on Thursday as scheduled.
Specifically, the Jan-Feb period saw an overall steady expansion in production, consumption and trade, as well as stable price levels and employment, Ning said.
More positive signs have appeared in March, with daily volume of electricity sold by the country's major power supplier State Grid Corp going up 11 percent year-on-year from the beginning of March to Sunday, said Ning.
Market expectation has also brightened, as signaled by the stock market uptrend since the beginning of the year, Ning added.
Yarn Expo from March 12 will offer a springboard for exhibitors to capture the potential of the China market. Over 450 exhibitors from 12 countries and regions, including new exhibitors from Egypt and France will display natural cotton, linen and wool, as well as extensive options for fancy yarn, functional fibres and other specialty yarns at the fair.
The three-day fair will see an increase in international exhibitor numbers, as well as domestic. This includes Yarn Expo Spring’s first ever exhibitor from France, as well as Yarn Expo’s first ever exhibitor from Egypt. Together with leading suppliers from Hong Kong, India, Indonesia, Korea, Pakistan, Singapore, the US, Uzbekistan and Vietnam, they will showcase products from around the world.
The trade show will be held along with four concurrent events, including Intertextile Shanghai Apparel Fabrics at Shanghai. The fair has developed a strong reputation for gathering high-quality suppliers, such as CCI, who offer access to their sustainable Cotton USA licensed spinners.
“Manufacturing a high-quality finished product starts with using high-quality raw materials,” explained Karin Malstrom, director of China & Northeast Asia at CCI in a pre-show interview, noting why they chose to exhibit at Yarn Expo Spring this year. “Our US Cotton Trust Protocol is the culmination of years of efforts and research to reduce the environmental footprint of the entire US cotton industry. Our whole US cotton industry is highly regulated and systemised by the US government. That's why, if you use US cotton, you are already way ahead to becoming fully sustainable, transparent and traceable in your operations. #??#We find that more and more consumers prefer natural fibres in performance garments, so this is a very exciting direction for us.”
“Recently, we’ve seen more companies seeking new and alternative ways to source high-quality materials. Cotton USA can provide excellent platforms for sourcing throughout the supply chain – from high-quality US cotton, to spinning, fabric and garment manufacturing, and even down to retail," said CCI.
CCI will showcase their global network of Cotton USA yarn licensees at the fair, creating opportunities for domestic visitors to source US cotton. “We feel that the timing is very good to introduce new and high quality sources of cotton and cotton-blended yarns to the market, especially in China,” observed CCI. “We can easily link Chinese manufacturers up with spinners anywhere in the world.”
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