Cotton Price Gap Between Internal And External Quotas Difficult To Understand The Thirst Of Enterprises

According to customs statistics, in August 2012, China

306 thousand tons, an increase of 47.6% over the same period last year. In August September 2011, a total of 5 million 440 thousand tons of cotton were imported, an increase of 111.3% over the same period last year. In 2012 ~2012, China imported 3 million 767 thousand tons of cotton, an increase of 122.9% over the same period of August.

According to a recent report released by the US Department of agriculture (USDA), the net sales of ~9 cotton in the US 2012/13 year were 72 thousand tons in the 6 week of August 31st.

Among them, mainland China signed a net contract of 60 thousand and 200 tons a week, an increase of 12 times compared to the previous week, accounting for 84% of the total contract volume.

As the largest cotton producing, importing and consuming country in the world, China's demand has strongly supported the international cotton market and has become an influence.

Key factors.

Cotton prices vary widely

According to one industry insider, at present, the price of foreign cotton 1 tons is 14 thousand yuan, and domestic cotton price is 18 thousand yuan. Chinese textile enterprises and other countries' enterprises are at a disadvantage in competition, and the business difficulties are very great.

The price of temporary cotton storage and storage in 2012 was 20 thousand and 400 yuan per ton, up 600 yuan from last year.

This means that the existing cotton price difference between inside and outside may be even worse.

In order to protect the interests of cotton growers, our country carried out the purchase and storage in September 2011, making the price of domestic standard cotton stabilized at 19300 yuan ~19600 yuan / ton in March of ~2012. 2011

By the middle of August, domestic cotton prices had been more than 5000 yuan higher than the international market, and the spread was 67% higher than the beginning of the year.

The associated people of China Textile Federation pointed out that the consumption of cotton and the international cotton market were in excess of demand, resulting in a sharp decline in international cotton prices this year.

In May 31, 2012, the cotton price index of China was 328 yuan, 18731 yuan / ton, the import cotton price index, the 1% tariff and the sliding tax discount of M cotton were 13441 yuan / ton and 13954 yuan / ton respectively, and the difference between the outer cotton and the domestic cotton was 5290 yuan / ton and 4777 yuan / ton respectively.

The cotton price difference at home and abroad has reached a record high this year.

This price gap has been difficult to digest through the adjustment of enterprises and the market itself.

"The present situation is,

The loss of domestic cotton must be maintained and imported with foreign cotton. "

The Federation pointed out.

Thirst for quota Enterprises

But not all enterprises can use imported cotton.

Wei Wei, a futures analyst in Shanghai, pointed out to our reporter that China's cotton imports are quotas, and this year's cotton import quota is 1 million 500 thousand tons.

Generally speaking, quotas are allocated according to the scale of textile enterprises.

For small businesses that are not easy to get quotas, if they want to get cotton import quotas, they will pay an additional 3000~4000 yuan per ton of quotas.

Because of this, quotas have been reduced to rent-seeking tools.

In fact, the quotas are no less than 10 million tons of cotton consumption per year.

Liang Jie, a futures analyst at the Yangtze River, points out that the consequences of a large number of imported cotton are the accumulation of cotton stocks at some ports, and even even outside the warehouse.

On the other hand, however, it is the enterprises that do not use the right price cotton, and the quota has become a barrier for the industry.

"Issuing no import quotas is a headache for the country."

Hebel, an analyst with GF, said that issuing quotas and importing large quantities of cheap cotton would make China become the Saviour of the global cotton growers, and how to deal with the loss of the business. If the quota is not issued, the enterprises will use the high cost cotton and face the main competitors such as Southeast Asia.

On the other hand, cotton farmers and textile enterprises are in a dilemma.

The NDRC has suspended this year's quota.

However, recently, Zhang Xianbin, head of the national development and Reform Commission's economic and trade division, said that the difference between cotton prices inside and outside the textile industry was limited.

With the large number of new cotton listed this year, there is no need for the state to put in reserves. The imported cotton will no longer issue quotas later this year. The supply and demand situation will be clear next year, and the stable price will continue to be the main keynote of the cotton market in the future.

Zhang Xianbin stressed that textile industry can only truly achieve industrial pformation and upgrading through structural adjustment.

The direction of the new year's national policy has been clear, and the temporary purchase and storage policy will be unswervingly implemented.

The most important task at present is to implement the policy of temporary collection and storage, protect the interests of cotton farmers, and keep the cotton market running smoothly. The quota problem is not studied this year.