How To Correctly View The Upcoming Cotton Reserves?

Recently, about

As the news became more and more dense, some market participants thought that the main reason for the rise of the contract in March 9th was the callback of the commodities market (crude oil slump 4%) and the timing of the reserve cotton wheel.

Then the upcoming cotton auction will be given to the present.

What impact did it bring? Some cotton enterprises expressed their views.

1. Round out.

Whether the resources can spin 40S or above count cotton yarn is very important. Low grade, low quality cotton or no one is interested.

In the year of 2015/16, Xinjiang cotton, which occupies 60% of the country's cotton output, declined in production and declined in quality. The cotton growers' income decreased. Regardless of the Southern cotton picking or the cotton fiber length in the North Xinjiang cotton, the weaknesses of the cotton fiber length, micron size and low fracture strength were prominent. The raw materials for spinning C32S and below were more than that of raw cotton yarn, while the raw material supply pressure for spinning C40S and above combed yarn was relatively large. Therefore, the high quality and high quality cotton was the voice and desire of cotton enterprises.

2, small and medium-sized cotton textile enterprises or usher in the opportunity to rebirth, resist the import of foreign yarn is bounden duty.

At present, about 10000000 tons of cotton reserves are in storage, and the relevant departments of the state are also anxious to reduce the pressure, but the number of medium and low grade cotton can be turned out to be questionable.

If the paction is not ideal or the import of low cost yarn is still rushing to clear customs, will the auction price be cut down, until the domestic cotton price and the India cotton price are reduced to 500 yuan / ton even fully connected, and the internal and external cotton yarn is also priceless and even the possibility of the external Yarn Import "hanging upside down". In this way, a large number of small and medium-sized cotton textile mills that stop and wait will enter the market again, consume a lot of low and middle grade national cotton stores, and block the path of 32S cotton yarn imports from India, Pakistan and Vietnam.

However, the impact of a deep fall in cotton prices on cotton processing, operating enterprises and cotton farmers can not be ignored. It is also crucial to minimize losses and confidence.

3, how to improve the competitiveness of export products, inventory challenges.

Some export oriented enterprises that spin high count yarn and high density grey cloth think that the percentage of lint cotton that is in line with spinning cotton yarn JC40S or above is small. The bid price is not the fundamental factor restricting whether the cotton enterprises participate in the auction. If the source of goods is not right, the lower price will not be answered.

Once some of the spinning enterprises are forced to drop their yarn, cotton and product grades, and the collision between the India and Pakistan mills, which will be adjusted to the 40-80S direction, how can the competitiveness of the export be improved? In addition, China's clothing, grey fabric or cotton yarn production outweigh the needs. The biggest difficulty is to go to stock. If the medium and low grade yarn, cloth and clothing are re expanded, the Chinese textile enterprises will return to the old road of "relying on quantity instead of quality".