The Import Tax Rate Of Textile Raw Materials Was Lowered By &Nbsp;

Blending

Import tariffs on textile materials such as cloth, linen yarns and so on.

Part of the import tax on blended fabrics fell from 12% to 6%.

Undoubtedly, the reduction of import tax is conducive to promoting trade balance.

From the data point of view, China's cotton imports showed a downward trend in recent years, and imports dropped from 156 thousand meters in 2005 to 86 thousand meters in 2010.

Exports increased significantly, from 549 thousand M in 2005 to 787 thousand M in 2010.

The adjustment of this policy will help expand imports and reduce production costs of some enterprises.

Green futures analyst Ma Zhan believes that the import tariff cut affects the supply and demand of cotton raw materials.

The fall in import tax rate will guide our country to increase the import of cotton textile materials, adjust the import and export structure of China's cotton textile raw materials, ease the gap between supply and demand of cotton in China, and thus suppress cotton prices.

In addition, the tax rate reduction can effectively reduce the cost of raw materials, enhance the competitiveness of enterprises, and is conducive to the optimization and upgrading of industrial structure.

The reduction of import tax rate reflects the government's determination to control inflation, which is conducive to the reduction of production costs by some enterprises that purchase raw materials for processing and production, and at the same time conducive to structural adjustment of enterprises.

At present, due to the worries of economic slowdown and the influence of the tail factors, monetary policy has weakened the control of inflation, while the import tariff reduction has been more moderate and better.

Obviously, the reduction of import tariffs alone has little effect on cotton.

But it also releases policy signals that the state may cut export tariffs on textile and clothing at any time and take the initiative to cool the economy.

This has a greater impact on cotton consumption confidence, which has led to a market resonance and accelerated the decline in cotton futures prices.

In addition, the reporter also learned that, at the end of June, cotton enterprises are facing increasingly urgent pressure on repayment of loans from the agricultural development bank. Cotton enterprises are speeding up shipping speed to return the funds as soon as possible.

As some large cotton enterprises still have a certain amount of inventory, while actively promoting cash sales, we hope to digest all inventory and recover the full amount of loans by the end of June.

This has also led to increased supply pressure in the short term.

According to China cotton information network's survey results of cotton textile enterprises with a total volume of 12 million 300 thousand spindles, the cotton blending ratio of textile enterprises showed a downward trend since May.

Of the surveyed enterprises, 61% reduced cotton inventories, 8% increased cotton stocks, and cotton had entered the warehouse of textile enterprises, with a stock of 1 million 18 thousand and 300 tons, a decrease of 119 thousand and 500 tons from last month.

A cotton distributor in Heze, Shandong, said that the stock of raw materials for large textile enterprises is relatively large at present, and there is little possibility of short-term demand for rigid storage in the support of high-grade Xinjiang cotton and outer cotton.

Although the inventory of small and medium-sized textile enterprises is relatively limited, but due to lack of confidence in the market, coupled with tight funds and difficult selling orders, demand is also suppressed at relatively low levels.