Cotton Prices In China Are About 80% Higher Than India'S Cotton Prices.

Despite the increase in cotton prices after the Spring Festival for more than 3 months, the biggest in the world.

In February 14th, Wei Qiao group began issuing its first phase 2012 short term.

"Roller coaster type" in recent two years.

Wei Qiao tries to rob cotton

It is reported that the 1 billion yuan short term financing certificate issued by Wei Qiao group is the first issue in 2012, and it is intended to use all the proceeds to purchase.

In February 21st, cotton prices continued to rise, textile enterprises three grade lint purchase price of 19800 yuan / ton, trading volume was very small, but the purchase amount of imported cotton increased.

According to the analysis of the industry, the reason why the cotton picking of Wei Qiao group is early should be related to the new cotton temporary purchase and storage policy.

"In March of this year, the state will introduce the 2012 temporary collection and storage policy."

In a recent conference organized by a securities dealer, the head of the China Cotton Storage Information Center said, "the basis for the purchase and storage of the price last year came from the grain price parity of wheat, corn and rice.

This year, grain subsidies and grain purchase prices are rising. In order to stabilize the overall situation of cotton, the final purchase and storage price should be slightly higher than that of 19800 yuan / ton.

This means that in the case of the state reserve city, cotton prices in 2012 are hard to come down sharply.

"In the past year, the new cotton purchase season will end until the end of April and early May. This year, it is estimated that there will be less than two months, and that is the end of March."

In February 22nd, Ma Junkai said that after the Spring Festival, the enthusiasm of cotton processing enterprises to buy was higher than that of the previous years.

A person in charge of the Wei Qiao group, who has always been low profile, said in a telephone interview that any comments involved in the company's listed companies and any comments made by the company may have an impact on the market of the whole industry, so the company is inconvenient to respond.

According to our understanding, since the launch of new cotton in October last year, Wei Qiao Group intends to purchase 500 thousand tons of new cotton in the fourth quarter of 2011 and the first quarter of 2012, with an estimated cash expenditure of about 10 billion yuan.

This issue of 1 billion yuan short margin, is clearly to make up for the liquidity gap, to ensure the supply of raw materials.