Nanjing Cotton Information Symposium - Experts Remind Enterprises To Control Risk

Sponsored by China national investment international trade Nanjing Co., Ltd. Cotton Information Forum Recently, it was held in Nanjing. This forum has discussed and analyzed the problems existing in the cotton market at present, and has looked at the market development from various angles and omni-directional. On this basis, it has put forward a reasonable forecast for the future.

　　 China Cotton Textile Industry Association President Zhu Bei Na This paper analyzes the current operation situation of cotton textile industry, and analyzes the current situation of the industry from the perspective of industry size distribution and layout setting. She believes that the import of cotton yarn is still huge. In addition to the price difference, we also have to import cotton from Pakistan and India. At this stage, we should readjust the product mix, enhance the competitiveness of the industry, accelerate technological innovation and spanformation and upgrading, and promote energy conservation and emission reduction. She stressed the need to further strengthen brand building and talent development.

The high price of the Zhengzhou commodity exchange, Ji Guang Po, combined with the international futures market, analyzed the domestic cotton prices. He summed up the current market situation in 10 words, namely, "weak", "complex", "strong support" and "conform to the market". He explained the current market volatility from the perspective of quantity, quantity and price. He pointed out that the low volume of orders and blocked exports are the important reasons for the difficulty of textile enterprises. He expects the domestic market to enter a vacuum period. The era of low cotton prices has passed, it is difficult to continue last year's market. Strong support is manifested by some periodic or interval oscillations. As a financial attribute of bulk commodities, cotton shows more and more obvious. He hopes that enterprises will pay attention to it and maintain a strong sense of risk control.

Li Nan, general manager of Louis Da Fu (Beijing) trading limited liability company, believes that the reason why we should pay attention to the market is to understand domestic consumption and the weakening of the international market from the perspective of supply and demand. At present, domestic cotton imports are mainly made of India cotton. If the quota is not issued, the price will be difficult to fall, and the international difference will continue to increase. In addition, the rhythm of quotas will also affect the spread.

Yang Xiaoxiong, general manager of Nanjing investment and trading company, shares his views with the participants at the present stage of the wool textile enterprises' difficulties and cost accounting. She thinks cotton and wool are two kinds of natural fibers. Compared with wool, cotton has certain advantages in cost performance. Yang Xiaoxiong combined with what he saw in Australia shows that the advantage of Australian cotton production lies in the high tech seed cotton technology. The climate causes little impact on Australian cotton production, but it will affect cotton quality.

Mr. Vinayak, an Oran international company in Singapore, pointed out that strong fluctuations in the cotton market last year have brought great challenges to everyone, and the volatility is still there. In recent years, for example, the number of arbitral cases in ICA has only been around 25 per year, but this year has exceeded 270 cases, which indicates the importance of risk management and the choice of suitable business partners. He pointed out that the huge internal and external spread of cotton is a structural problem and is likely to expand further in the current market environment. It reminds us to pay close attention to consumption and policy and take full account of the weather factors.

Li Minghan, general manager of Hongkong Zhongxing cotton Co., Ltd., Shanghai representative office, judged the general tone of the cotton market this year through the global and domestic supply and demand balance. He pointed out that the decline in supply and demand caused by the decline in cotton ratio and quantity. Cotton prices remain high, and the quota for imported cotton is particularly critical. He cited examples of cotton production in MOT, Texas, suggesting that even with the recovery of the market, high-grade cotton is still in short supply. The rational return of high cotton prices should be accompanied by rational thinking. He suggested that domestic enterprises should pay more attention to Mediterranean cotton, Central Asian cotton and West African cotton.

Some participating entrepreneurs also shared their views from the micro perspective of enterprises.

Xiao Liquan, general manager of Tongyu Textile Group Co., Ltd., Jiangsu, analyzed the comparative advantages of imported cotton and domestic cotton, and judged that cotton would still be a low price in the near future.

Lu Bencheng, general manager of far spinning industrial (Wuxi) Co., Ltd., taking some cooperative international brands as an example, shows that the reduction in demand is, on the one hand, a reduction in the volume of orders, and on the other hand, the spanfer of orders. He believes that the main problem of the market is to ensure a balance between production and sales.

Qian Yabin, general manager of Nanjing new cotton textile printing and dyeing Co., Ltd., said that the main keynote of this year's cotton market is "down", and textile enterprises will face a difficult road than last year. He showed great concern and expectation to the Nanjing cotton trading company, and pointed out that this could bring about a new channel for the development of the cotton textile industry.

Zhang Shouxiang, chairman of Jiangsu Donghua Textile Co., Ltd. pointed out that "high levy and low deduction" has been plaguing cotton textile enterprises. He hopes that quotas can be given to the enterprises as early as possible and as much as possible, otherwise the cotton price differentials will continue to increase, resulting in fewer orders.