Cotton Prices Tend To Be Stable And Favorable Textile Market

Two years ago, the government of India tried to stabilize the soaring market. cotton The price of cotton exports is suspended. This incident has caused a great stir at home and abroad, and the most direct response is the rise in global cotton prices. In the first half of this year, because of the adjustment of import tariff and RMB exchange rate, the import and stock of cotton in China increased again.

"Two very different situations lead to the same result, which is hidden behind the tighter global cotton supply." The head of a garment manufacturer in Shishi said that since October, cotton import and inventory have become a hot topic in Shishi textile and garment industry. Now that winter is coming, there is a great demand for cotton products that need to be turned over. Fortunately, because of the support from temporary purchasing and storage policy and the stable domestic cotton market, many enterprises in Shishi have made preparations for cotton storage, so as not to lose their hands and feet.

What caused the first half of the country? Cotton market In this regard, through visiting Shishi local textile and garment enterprises, the main reasons for the fluctuation of cotton market are as follows: first, the cost of cotton planting is raised. The rising cost of production has led to insufficient cotton growers' confidence and reduced or directly withdrawn from cotton cultivation, resulting in a tight supply of cotton. Second, the quality of cotton decreased. Cotton farmers in China ignore the influence of impurity rate on cotton quality and grade, which makes cotton spinning enterprises in the fierce market competition tend to use imported cotton. Third, the impact of imported cotton on the domestic market. The price of cotton in the United States is lower than the cost of cotton production in China, resulting in the lack of competitiveness of cotton in China. At the same time, South Asia relies on its cheap labor to produce low-cost cotton. Therefore, domestic cotton is at a disadvantage in competition, and the market price fluctuates greatly. Many textile enterprises worry about the instability of cotton prices, and the phenomenon of large quantities of imports and hoarding cotton also follows.

"A large number of textile enterprises in China do not have scale advantages, so they rely more on upstream raw materials. In the increasingly severe situation of China's textile exports, the price of cotton and other raw materials can remain stable or even lower, which is very important. It is obvious that whether the fluctuation of cotton market has become the focus of Shishi textile enterprises. In October this year, the announcement of the national development and Reform Commission brought greater confidence to Shishi textile enterprises. According to the national development and Reform Commission, the demand for cotton in China in 2012 is relatively stable, mainly based on three factors. First, it has the policy of purchasing and storing up. The temporary storage and purchase of cotton in 2012 started in September 10th, and the volume of storage and storage increased gradually, and the cotton prices in the market rebounded steadily. As new cotton is on the market, storage and consumption will continue to increase, and domestic cotton prices will continue to pick up and close to the reserve price. Secondly, the capacity of national regulation and control is enhanced. After storage and storage last year, the number of national reserve cotton stocks increased, and the structure of cotton reserves became more reasonable, which enhanced the material basis for regulating and controlling the market. Third, there is plenty of resources in the international market. It is predicted that in 2012, the world's cotton output will be 24 million 740 thousand tons, and consumption will be 23 million 170 thousand tons, and the output will exceed 1 million 570 thousand tons. At the beginning of the year, the stock will be 13 million 270 thousand tons, an increase of 4 million 360 thousand tons compared with the previous year, which is a relatively high historical level.

"Because of cotton. Price Lower chain impact will also benefit the downstream garment and textile industry. " Yang Jizhao, Secretary General of the China Textile Industry Association, said in an interview recently that the stable price of cotton is a good news for textile enterprises. Maintaining low cotton prices can make textile enterprises maintain a stable and low cost, so it is a good thing.

According to the insiders, to maintain the stability of the cotton market, we must standardize our cotton circulation market, increase the access threshold for cotton circulation enterprises, and eliminate small workshop type enterprises, so that large enterprises can compete in the management level, technology, credit and brand areas to form a stable cotton production value chain. Besides, the government should also pay attention to the nature of subsidized cotton purchase and storage system instead of simply making it a redistribution system of interests in the cotton value chain. When formulating purchase and storage prices, the first thing is to link the purchase and storage price with the price of cotton futures in the international market, the cost of cotton production in China and the expectation of textile exports. At the same time, the national reserve should pay attention to cotton prices in the international market when selling cotton.