Xinjiang Cotton Concentrates On Price Decline

The new Urumqi cotton subsidy policy has not yet been settled. Recently, it is reported that the Railway Bureau of Urumqi will ensure that 270 wagon cotton is sent to the mainland every day.

In addition, the imported cotton provisional slip tax policy is being implemented.

Some textile enterprises in China reflect that the price of Xinjiang cotton has declined significantly in recent years.

In July 1st, the Xinjiang Railway Bureau issued a notice to Xinjiang cotton enterprises. From July 10th to the end of August, 270 wagons will be provided daily to Xinjiang cotton pport, and 400 yuan / ton subsidy will be delivered to the cotton pported to the mainland. The total amount of 600 thousand tons of lint will be pported to the mainland. The obvious quality advantages of Xinjiang cotton will have a great impact on the sale of cotton in the mainland.

"Xinjiang cotton prices of many cotton and linen companies and warehouses in Shandong declined significantly, with an average decline of 300 yuan / ton.

At present, the 229 class cotton cash pick up price is 14100 yuan / ton.

Introduction of raw materials for a textile enterprise in Shandong.

For the reason why Xinjiang cotton prices are declining, Ma Xuan, director of Xinjiang Cotton Industry Office believes that this is the result of multiple factors.

First of all, the subsidy from Xinjiang reduced pportation costs; secondly, to speed up the pportation capacity of Xinjiang cotton and increase the sales pressure of Xinjiang cotton in the mainland; third, the temporary slip tax policy which was introduced not long ago, the obvious preferential treatment for imported high-grade cotton, increased the pressure of Xinjiang cotton price; fourth, some cotton merchants returned loans in the middle and late 6 months, quicken the speed of capital withdrawal, and the selling price of Xinjiang cotton fell; fifth, the textile market had difficulty in selling high count yarn, and textile enterprises reduced the purchase amount of Xinjiang cotton.

Meanwhile, many cotton textile enterprises say they will not buy Cotton in large quantities in the future.

According to Xinjiang railway news, Xinjiang cotton will be pported to the mainland by the end of August.

It is estimated that 11 thousand tons of cotton will enter the mainland market every day, and the total volume will reach 600 thousand tons.

The arrangement of the pport plan will greatly relieve the pressure on the pport of new cotton and accelerate the allocation of cotton in the Xinjiang area before the new year. This will create favorable conditions for the promotion of Xinjiang cotton. On the other hand, Xinjiang cotton will concentrate on the frontier and will further increase the difficulty of selling cotton locally.