The Difference Between Domestic And Foreign Cotton Prices Is Widening, And Our Export Advantage Is Not.

There is a low price in the world.

However, cotton prices in China are much higher than those in other countries, and thus the export advantages of our textile enterprises.

Market share also

Quite a few.

However, resistance has been encountered in the use of low price cotton. At the same time, some countries in Southeast Asia have begun to show their advantages in production and price. The share of China's cotton textiles in the international market has been replaced by other countries.

Originally, the downturn of textile market demand can also ease the pressure of some textile enterprises, but because it is difficult to purchase cheap cotton for production, many textile enterprises have to enter the "dormant period".

In sharp contrast to the difficulty of domestic textile enterprises, domestic cotton imports began to grow significantly, and port cotton was piling up.

Tan Xiaohu, who has been involved in cotton trade for many years, told reporters that because of the large spread of cotton prices at home and abroad, many traders began to purchase large quantities of cotton from India and the United States. Of course, they had to get quotas to make money and sell cheap cotton imported to domestic cotton spinning enterprises. That's why cotton import quotas were fired.

Tan Xiaohu also told reporters that after the fall in international cotton prices, cotton growers in the United States and India were also anxious to find the way. But at this time, the purchase price of the domestic ministries and commissions, which had been substantially higher than the international market, had been put on the market. In any case, a large number of cotton was pported to China's ports, especially when the global market demand was low.

Where is the problem?

"Cotton purchase and storage prices were set high at the beginning. In 2011, when the ministries and commissions allocated 19800 yuan / ton for storage, the United States shipped to China the cotton price without tax was only 15000 yuan / ton."

Dong Shuangwei, director of the futures research and development center, analyzed for reporters that when the domestic cotton storage and purchase price was set up in 2011/2012, two factors should be paid attention to. First, when cotton prices rose in 2010, a large part of domestic cotton reserves had been used for throwing and storing. In 2011, domestic cotton reserves had reached the level of replenish; two, cotton prices rose sharply, and the departments concerned were interested in raising farmers' enthusiasm for planting cotton.

The price of international cotton seems to be the same as that of domestic meat.

International cotton prices fell from 210 cents / pound in 2011 to 66 cents / pound this year.

But in this process, the price of cotton purchase and storage has never declined in China. The new financial reporter has learned that the relevant ministries and commissions have set the cotton purchase and storage price in 2012/2013 for 20400 yuan / ton. Although the purchase and storage has not yet started, the cotton purchase and storage price in the new year and the cotton price in the international market are still widening.

For the impact of the new cotton storage and storage price on the market in the new year, Dong Shuangwei said that the current spot price of imported cotton was about 17500 yuan / ton (including the quota sales price), while the cotton price at the end of 2012 came to a price of 80 cents / pound, which was roughly 13000 yuan / ton left and right (excluding quota price), which was in sharp contrast to the 20400 yuan / ton storage price set by the relevant ministries and commissions.

From the fourth quarter of 2011, the problem of high price difference between inside and outside cotton began. Now it seems that the difference between new cotton purchase and storage price and foreign cotton price has not been narrowed, but there is a trend of further expansion. How to return has become the biggest problem in China's cotton market.

Some analysts told reporters that if the international cotton prices remain low in the future, domestic cotton production, trade, processing, import and export will still be distorted, and in this distorted market, the problem of abnormal pportation of interests will become more prominent.