Main Indicators Of Spinning And Weaving Deteriorated The NDRC Next Week Maybe Exploratory Storage.

According to sources, the NDRC made a preliminary decision at an internal meeting in August 27th, which will start next Monday, that is, September 3rd, and will sell 2011/2012 for the year.

20-30 million tons, the auction price is 18500 yuan / ton, each auction increase of 20 yuan.

The above information has not been confirmed by the national development and Reform Commission.

The person also confirmed that the quotas for the 400 thousand tons of imported cotton had been issued. However, he reminded that the quota for the import of these 400 thousand tonnes of imported cotton was only the quota for processing trade, because its cotton (19540,95.00,0.49%) and finished products could not be circulated in the domestic market, and the quota increase had a very limited impact on the market.

These policy options were introduced before the new cotton market was launched in October, aiming to increase market supply and ease the pressure of textile enterprises.

According to the data released by the General Administration of customs, the total export volume of textiles and clothing in 1-7 months has been completely reversed to negative growth, of which exports in July dropped by 8.1% over the same period last year.

This reporter learned that a Chinese Cotton Textile Industry Association's survey of hundreds of key cotton textile enterprises showed that at least 30% of the above scale enterprises had limited production, and more than half of the SMEs had to stop production because of the high cost of using cotton. Most enterprises lost more than 2000 yuan per ton of pure cotton yarn per ton.

At present, the price of imported cotton to port, which is quasi tax quotas, has been reduced by about 3200 yuan per ton of domestic cotton price similar to that of similar specifications, and the difference between imported cotton and domestic cotton in tariff quota has exceeded 4000 yuan.

Exploratory dumping

Compared with the reserve cotton of more than 4 million tons in the hand of the State Reserve, the dumping of 20-30 tons is more like a test of the market reaction.

First textile network analyst Wang Qianjin said that the new cotton began to sporadically appear in September, but it is still 1 months from the total sale of new cotton in October. In 8 and September, it is considered to be the most tense time of cotton shortage and cotton.

At the moment, policy thinking should increase the supply of the market.

How to increase supply? There are two choices before policymakers. One is to increase the supply.

The second is to sell state cotton reserves.

Wang Qianjin said that taking into account the cotton purchase and storage in 2011 (September 2011 -2012 August) and the previous level of national storage, it is estimated that China's reserve cotton company currently has about 4000000 tons of national cotton reserves, of which 1 million tons of cotton are exported.

According to the policy of purchasing and storage which has been announced, the new cotton protection price will be launched in the new year after September. "At the moment, it will be more realistic to choose to throw away the stock and ease the pressure on the stock market rather than the general trade quota."

2011 cotton production in China is 7 million 300 thousand tons per year. As of July, 5 million 140 thousand tons of cotton had been imported in that year.

However, downstream textile companies prefer the government to increase the quota of imported cotton.

The head of a large cotton spinning enterprise in Guangdong told reporters that the pricing of throwing and storing is particularly critical. The bid price of 18500 yuan / ton is quite similar to that of the domestic cotton spot price, which has little attraction.

The huge price difference between domestic and international cotton prices has attracted international and domestic cotton traders. They have hoarded large quantities of imported cotton in warehouses at ports such as Huangdao port.

Wang Qianjin said that conservatively estimated that at least 1 million tons of imported cotton are still hoarding at ports. If the quota is not issued, the cotton may be pferred to ports such as Southeast Asia.

Since the beginning of this year, the national development and Reform Commission has issued a quota of about 3 million tons, with the exception of 894 thousand tons of intra tariff quotas, while the rest are sliding tariff quotas.

The huge price difference between inside and outside cotton is related to the collection and storage of the Chinese government. Under the background of the global cotton production increase, the international financial crisis has intensified, resulting in a serious imbalance between supply and demand of cotton. The commodities, including cotton, have experienced the most extensive and the biggest decline after the financial crisis. The price of US cotton has dropped nearly 50% compared with the same period last year. Last September to March this year, the Chinese government's acquisition and storage of the market not only stabilized domestic cotton prices, but also partially stabilized the international cotton price.

Main deterioration of spinning clothing

In fact, the textile and garment industry has been calling on the government to increase the quota of imported cotton and ease the pressure on domestic high cotton prices.

The above director of Guangdong textile enterprises told reporters that the huge price difference between inside and outside cotton has weakened the international competitiveness of Chinese textile and clothing.

"Compared with the cost of cotton used by competitors such as India and Bangladesh, China's textile and clothing has a more negative factor besides the rising labor costs and RMB exchange rate."

He said.

A few days ago, the China Textile Industry Federation's semi annual situation analysis once again touched on this topic.

The Ministry of industry estimates that the price of raw materials will still be the primary factor affecting the operation of the industry. If the problem of cotton price difference at home and abroad can not be effectively alleviated, the situation of cotton spinning enterprises will deteriorate more effectively, and will continue to have a negative impact on the upstream and downstream industries and the terminal market.

According to the bulletin of the analysis, a number of indicators in the textile industry are deteriorating: the gross industrial output value of textile industry increased by 11% over the same period last month, 1-7 percentage points lower than the previous year, the negative growth of new construction projects, a 9.4% decline in 1-7 months, and a decline of nearly 2% in the first half of the year, and a decline of more than 40 percentage points over the same period last year.

Wang Qianjin said that the two most important indicators are exports and domestic sales. "Why do we say that the current situation of textile and clothing is even more serious than that of the financial crisis in 2008? That is because the export engine of 2008 is flameout, but enterprises still have the support of the domestic market, and now they are hindered by both exports and internal sales."

He said that the current growth rate of domestic sales is about 10%, but the number has increased by zero, "this is the bottom of many years."

Cotton farmers in Shandong province also told reporters that recent research found that Shandong Textile Enterprises Limited production, production is quite common, leading enterprises in many industries have also limited production, the industry's overall operating rate of only about 60%.