Pass The State Or Cut Down The Import Tax Of Cotton.

The global cotton planting area will increase, which has already become the consensus of the industry. The downstream cotton enterprises have great pressure on inventory and the sales of products are not smooth. spot price Continue to fall, many signs indicate that Zheng cotton will continue or be weak in recent times.
After the domestic cotton price hit the peak of 34870 yuan / ton, it gradually welcomed the callback consolidation. On Monday, the market rumors that the state will reduce import tariffs and textile export tax rebates to stimulate cotton diving. The global cotton planting area will increase, which has already become the consensus of the industry. The downstream cotton enterprises have great pressure on inventory, the sales of products are sluggish, and spot prices continue to fall.
Yesterday, domestic cotton fell 5.24%, leading to the decline of commodities. US cotton side, as at press time, quoted 191 cents, down 3.22%. Insiders have told reporters that the market has recently heard that the state will reduce import tariffs and textile export tax rebates, stimulating commodity callbacks.
Many people in the industry say the rumors will be made against the state. Cotton duty free import We should reduce the import tariff on sugar, reduce the duty of corn, soybean and oil, reduce the value-added tax of agricultural products and food related industries, and reduce the export tax rebate rate of textile and garment.
Although these rumors have not been confirmed and no authoritative departments have released, investors' panic has already appeared, and the market has responded to bad news ahead of time.
It is reported that the textile export tax rebate rate may be reduced by 3-5 percentage points. If the news is true, it will have a greater impact on the price of cotton and PTA. At present, domestic textile enterprises mainly rely on exports, and domestic consumption is relatively stable.
If the export tax rebate decreases, the profits of the enterprises will obviously decrease, and the export price advantage will also decrease, which will affect the price competitiveness, thus reducing the consumption of cotton and chemical fiber, and indirectly reducing the consumption of PTA.
But even if not drawback Rate reduction, consumption in the inventory cycle is insufficient to support the current price, and the market itself needs to be callback.