Domestic Textile Enterprises Use Large Quantities Of Low Cost Imported Cotton To Reduce Costs.

A large number of cotton imports have been imported in China, but the number of domestic textile and garment exports has declined.

From the recent survey of downstream textile enterprises, after more than 9 months' de stocking and a large number of low price imported cotton, the cost of raw materials for textile enterprises is generally not high at present, and much lower than the average price of the domestic spot market.

Although the textile enterprises have fewer orders, the proportion of profit preservation and low price import cotton has increased.

In addition, due to the relatively abundant supply of cotton in the market this year, the textile and cotton stocks are also kept at a low level. Most of the enterprises adopt the strategy of "buying and selling with use". The average stock is about 40 days.

As the sale of grey cloth is not ideal, some enterprises occupy larger funds for finished products inventory, but from the cotton spinning industry chain, from the cotton to the fabric links, the overall raw material cost has dropped significantly, and the inventory of high priced cotton production has basically been digested.

According to the imported cotton structure, India cotton is about 1 million 100 thousand tons, the United States cotton is about 500 thousand tons, Australia cotton and Brazil cotton account for about 600 thousand tons. The imported cotton from Burkina Faso from Central Asia and West Africa is about 200 thousand tons, and the rest of the imported sources are relatively scattered and the import scale is relatively small.

From the point of view of imported cotton prices, a large number of low price cotton resources in the early stage were derived from low price India cotton. The quality of India cotton was lower than the price of Xinjiang cotton in China at 2000 yuan / ton, and the competitive advantage was obvious.

However, the quantity of cotton exported in the late period of India is extremely limited. At present, the domestic cotton prices in India have also increased significantly. From 3 to May, the imported cotton resources mainly came from the United States cotton, and they did not take advantage of quality and price.

From 6 to August, cotton from Australia and Brazil will arrive in the southern hemisphere. According to the current quotation of cotton, the quota price is about 2500 yuan / ton. The price of Australia cotton is basically the same as that of the domestic high and middle grade cotton, and the price is not dominant.