Hubei's 60 Billion China Biggest Cotton Trading Center Will Increase Circulation Rate

Recently, from the government of Tianmen, Hubei, China learned that the planned total investment of 6 billion yuan in China (Tianmen) cotton trading center was settled in Hubei Tianmen. The project is expected to be completed in 5 years. After completion, it will achieve a profit tax of about 500 million yuan per year, and will become the largest in the country. Cotton trading market 。

Drow holding contract

Hubei Tianmen is located in the Yangtze River valley cotton region, one of the three major cotton producing areas in China, and is an important commodity cotton base in China. On the afternoon of 8 July, the government of Tianmen and Zhuo Er Holdings Limited held the signing ceremony of the project at Royal Garden Hotel. Drow company will invest 6 billion yuan to build the China (Tianmen) cotton trading center in Tianmen. Tianmen mayor Ke Jun signed a contract with Yan Zhi, chairman and CEO of Zhuo Er Holdings Limited.

Apart from the main business of cotton, it will also form wool, flax, all kinds of fabrics and various kinds of fabrics. Textile accessories Textile machinery and spare parts and other products market. The first phase of the project is scheduled to start in the middle of this year and is expected to open at the end of next year.

It is understood that Hubei Tianmen has made over 100 million cotton lint output for 13 consecutive years, and its output is 1/80 of the whole country. It is also an export base for high quality cotton in China. Zhang Aiguo, director of the Tianmen municipal Party committee and the Standing Committee of the Municipal People's Congress, said Tianmen is known as the "cotton town". It is the national high quality cotton production base. The quality of cotton is good and the output is high. Cotton production has been over 13 million times in history, and two national cotton production meetings have been held.

To strengthen and enlarge the cotton industry and textile industry has always been a dream of millions of people. He pointed out that the construction of China's (Tianmen) cotton trading center is of great significance to the development of Tianmen's cotton industry, textile industry and boosting the rapid economic development of Tianmen. The whole city must always adhere to the idea of "industry first, entrepreneurs first", and always strive to create a more relaxed and harmonious investment environment, provide quality services for project construction, ensure early construction and early completion of the project.

Zhuo Er Holdings Limited is a well-known public property provider and service provider in China. Its business involves many aspects such as textile, media, investment, real estate and so on. It has invested in Hubei to set up Hubei Zhuo Jinlong Textile Co., Ltd., Hubei Zhuo Er ERON Textile Co., Ltd. and Hubei Snow Dragon Textile Co., Ltd. In addition, Zhuoer holding and subordinate enterprise groups also built large-scale commercial projects and headquarters office projects such as "Hankou north international commodity trading center", "Wuhan living room" and "first enterprise community".

Hubei cotton industry faces difficulties in buying and selling labor

Hubei is located in the middle and lower reaches of the Yangtze River. It is the main cotton producing area in Central China. The average annual output accounts for 7% of the total output of the country, ranking fifth in Xinjiang, Shandong, Henan and Hebei. Since 2010, cotton prices in Hubei's cotton market have been strong, and the prices of cotton futures, matching, throwing and storing have been strong. The price of seed cotton continues to rise, and the cost of textile and cotton continues to increase. The situation of purchase and sale is extremely complex, and the chain of industrial risks is tight, and the market wait-and-see sentiment is strong.

The purchasing price continues to rise, and the risk of cotton processing enterprises is increasing. Seed cotton purchase showed a high trend and a strong upward trend. The average purchase price of the province has exceeded 5 yuan / Jin, an increase of 67% over the same period last year. After the listing of new cotton, the cost of acquisition has always been ahead of the futures contract price, and the spot price of cotton is ahead of the futures price, which is higher than the forward contract price. Cotton purchasing processing enterprises can not realize futures hedging, and at the same time, it is affected by the negative impact of imported cotton to port, state dumping and textile enterprises' affordability. Cotton purchasing processing enterprises are at the cusp of price. They are very worried about the future market.

Cotton farmers are actively selling, and high priced incomes are run by cotton traders. Cotton growers have basically accepted the current purchase price of seed cotton. Most cotton farmers believe that the purchase price to 4.8 yuan / Jin has been very impressive, and this year's acquisition conditions are very loose, so the sales attitude is positive, there is no hoarding mentality, and some cotton brokers hold a gamble mentality, slightly hoarding.

The competition environment is bad, and rush to buy and buy, resulting in a decline in quality. Hubei's cotton resources in recent years are nearly 450 thousand tons, far from meeting the production needs of more than 130 400 and more than 600 200 type enterprises and many small factories in the province. In addition, in recent years, the sale of cotton seeds by neighbouring cotton merchants has made the seed cotton flow out of large quantities, resulting in a growing trend of seed cotton buying. Unlicensed cotton traders are active and abnormal. They go to the countryside to string households and go deep into the field. The cotton seeds picked by cotton farmers have also become a hot commodity. Some even break the green peach and seed cotton. The moisture content is as high as 30~40, which seriously exceeds the national standard of moisture regain and is controlled by 10.5%. Some small factories do not separate grades, do not recognize water, do not pick three silk, buy in the daytime, process at night, sell on the next day, withdraw funds from circulation, and purchase by cycle. What is more bad is that all cotton and short fiber can be mixed into lint, and only cotton bags and cottonseeds are left after processing. Many of the 400 large factories have no choice but to relax the water standard. Within 15 points, cotton is a normal standard. Individual management standard enterprises adjust the water content of 10 points to 13 points. This year, super moisture cotton is very common.

The gap is widening. Cotton prices soar Textile enterprises decided to spend the winter together. The above scale enterprises in Hubei province have about 10 million spindles of textile spindles, about 1 million tons of cotton per year, and the annual output of the province is only about 450 thousand tons. The annual gap is more than 50%. The textile industry has developed rapidly this year, and the demand for cotton has increased. It is estimated that the textile cotton will reach 1 million 200 thousand tons, and the gap between supply and demand will reach 60%. Relying on exports and domestic demand, the textile industry has gradually escaped the impact of the financial crisis and the situation has improved markedly. But after entering the year of 2010, because of the appreciation of RMB and the increase of labor cost, especially the cost of raw materials such as cotton, the good situation is hard to maintain. Textile mills generally reflect the affordable cotton price of 23000 yuan / ton. In the face of the current uncontrolled rise of cotton prices, some textile factories have decided to switch to chemical fiber and other alternatives, and some have to reduce production and orders, or even close down production and prevent losses.

New market will increase transaction speed

According to reports, China (Tianmen) cotton trading center project consists of two parts of the park. The first part deals with cotton trading, processing, warehousing and logistics as the core. The second part is to coordinate with the central construction finance, business services and other supporting systems.

The first phase of the project will be launched by the middle of this year and will be operational by December 2012.

After the completion of the project, the upstream and downstream enterprises of the cotton industry chain can be fully integrated to further increase the volume of China's cotton industry trade, enhance China's cotton reserve capacity, increase the turnover rate of cotton trade, and create a cotton production cluster covering the whole industry chain of planting, logistics and textile, forming a trading market that is mainly composed of cotton, wool, linen and textile fabrics, accessories and other products, and will gather 50% of the total cotton spot and related products trade. It can also promote the development of agricultural trade, standardize market management, promote employment and promote regional economic development.

China (Tianmen) cotton trading center will become the largest cotton trading market in the country and will promote the circulation of cotton market. With the gradual development of China's cotton economy, the important role of cotton circulation will also be reflected in cotton consumption through the circulation of production decisions, rather than the production of cotton determines the circulation. This will depend on the faster and better development of the cotton market, the establishment of a closer linkage between cotton production, circulation and consumption, and the modernization of cotton circulation industry. From the perspective of development, cotton circulation will play a more prominent role in the cotton industry.

In recent years, the comprehensive transportation of expressways, railways and waterways has developed rapidly, forming a transportation network connecting north and South and connecting East and West. Its unique location advantage makes Tianmen become the central logistics hub of the "North Cotton and South spinning" industrial structure, and also usher in a new process to undertake the transfer and upgrading of the cotton textile industry.