With the confirmation of the thirteenth round of negotiations between the two sides in early September and the achievement of the first phase of the results, the RMB ended its previous rapid depreciation trend, showing a slight appreciation since September 4, and the central price rose to a two-month high yesterday. 7.0617, today's record high of 7.0582, 0.4% higher than the September 3 low of 7.0884, the overall appreciation is not large.

Since the end of October, the 1% tariff spread of domestic and foreign cotton stocks has entered the upside down state, and the range of reversed sliding under the sliding tax has been expanded to more than 1,000 yuan per ton. Except for the recent rapid increase in foreign cotton, the relative value of the RMB after the previous depreciation The low position is also an important reason. The depreciation of the renminbi is conducive to exports, but it has increased the price of imported dollar-denominated commodities. The starting point of the above round of depreciation was 6.8938 in the middle of August 1, and depreciated to a minimum of 7.0884 on September 3, also the outer cotton of 75 cents/lb. The price of 1% tariff was increased from 12,749 yuan/ton to 13,103 yuan. / ton, the depreciation factor caused the price of imported cotton to rise by 354 yuan / ton; the price of sliding standard tax rose from 14,178 yuan / ton to 14,393 yuan / ton, up 215 yuan / ton. The appreciation of the renminbi since September 4 has affected the decline in import prices, but the range is limited. The same 75 cents / lb of cotton, the value of the current mid-price, the foreign cotton 1% tariff price fell to 13048 yuan / ton, compared with September 3, a drop of 55 yuan / ton; sliding standard tax price dropped to 14,358 yuan / Tons, a drop of 35 yuan / ton.

Due to the recent easing of Sino-US trade situation, the renminbi has continued to appreciate, but the industry is expected to return to 7.0 or above, so the effect on lowering the import cost of foreign cotton is limited. However, as domestic cotton prices rebound, the price difference between domestic and foreign cotton is expected to return to the positive range.