India Banned The Export Of Cotton &Nbsp; Textile Enterprises Were Diverted To Other Countries.

Yesterday, foreign media reported that India foreign trade manager (DGFT) issued a statement prohibiting the export of cotton tax numbers of 5201 and 5203. India is the second largest cotton producer and exporter in the world. The ban means that an important import channel of China's cotton is blocked.

"In recent years, the total volume of cotton imports from India has increased year by year. Five or six years ago, India accounted for only about 15% of the total cotton imports in China, but in 2011/2012, this figure has changed to 40%." Wang Qian, editor in chief of China Textile Network, told the first financial daily, but fortunately, the cotton production in other producing areas is adequate this year. In the short term, the ban on cotton printing may push up the price of cotton yarn, but the global cotton market is oversupplied. In the long run, the price increase of related products is not great.

"Cotton prices in India are the lowest in the world, and the price is at least 1000 yuan per ton compared with the largest import channel in China," he said. Wang pointed out that this price advantage has attracted many cotton traders in China, and India's position in China's cotton import market is directly following the United States. This year, the number of printed cotton has reached 800 thousand tons, and the estimated annual volume will reach 1 million 300 thousand tons.

stay futures market The ban on India's cotton exports has pushed up cotton prices. Yesterday afternoon, Zheng cotton opened up, the contract CF203 closing price of 20635 yuan / ton, about 0.5%.

"In the short term, India's cotton export ban will play a stimulating role in the market and push up the futures and spot market prices." Wang Qianjin thinks, but in the medium to long term, this year, the global cotton production will be in an oversupply situation. Even if there is no India cotton participation, it will not change the supply and demand of cotton in the global market.

The US Department of agriculture (USDA) in February 2012's global cotton outlook report also pointed out that global cotton production in 2011/2012 is expected to reach 26 million 855 thousand tons, an increase of 6% over the same period, and is expected to reach a record high. The global cotton consumption in 2011/2012 is expected to be only 23 million 887 thousand tons, down 1 million 73 thousand tons compared with the 2010/2011 data, and the difference between production and consumption reached 2 million 968 thousand tons, a marked increase compared with the same period last year.

And China is the largest. Cotton consuming countries The demand for cotton will also decline in 2011/2012, and consumption is expected to be 9 million 580 thousand tons, down 4.3% from the same period last year.

She Dingheng, Vice Minister of Management Department of Guangdong Silk Textile Group Co., told reporters that about half of the cotton imports of the company depend on imports. At present, the largest share of imported cotton is Australian cotton. India cotton accounts for about 20% of the total cotton imports of the company. The ban may have a certain impact on the procurement of the company. However, the price and quality of cotton and India cotton in Pakistan are close to each other, and the company can increase the purchase amount of cotton in Pakistan to cope with this situation.

The head of a garment enterprise in Wuhan also told the newspaper that in recent years, the garment industry has developed rapidly. Besides cotton yarn, many enterprises have begun to develop some blended or deformed fiber materials instead of cotton as raw materials, and the proportion of pure cotton clothing in the overall garment industry market is getting smaller and smaller, and now only accounts for about 35%. Therefore, the impact of India's cotton export ban on raw materials or finished products is not very large.

"At present, the US cotton has been all booked up this year, and the total volume of our country has reached about 2000000 tons." Wang said, however, Brazil and Australia have gradually grown into new cotton exporters. It is estimated that the direction of domestic enterprises' purchasing will shift to the two countries in the future.