India'S Cotton Exports Are Constrained By The Growth Of China'S Cotton Demand.

India cotton Exports showed signs of recovery. Since the beginning of this year, the number of registered exports has increased by 2 million packages.

According to sources, the number of registered cotton exports has increased from 3 million 800 thousand packages to 5 million 800 thousand bales. But cotton trade and analysts say it may be less than 5 million bales.

It is reported that the exporter now buys half of the 200 thousand packages of daily goods arrived in the market (170 kg / bag). The India Cotton Corp purchases about 40 thousand packages, domestic. Spin The factory purchased 60 thousand bales.

However, opinions on cotton prices are consistent. At present, the export quotas of Carle - 6 varieties are 35000 rupees /356 kg.

A cotton trade analyst, A. Ramani, said that by the end of January, the export registered cotton was 420-430 bales. Maybe it has reached 5 million packs.

A. Ramani said exporters may buy Cotton ahead of schedule, because the annual import quotas will be issued soon after the Chinese New Year.

He said that China will issue 682000 tons of tariff import quotas, and India may get a large amount of tariff import quota.

China has imposed a tariff of 1% on compulsory import quota. Otherwise, under normal circumstances, China will levy a 40% tariff.

The price of cotton in China's domestic market is about 19000-20000 yuan / ton at present. In contrast, after the India cotton tariff is imposed, the CIF price is 17000 yuan. In addition, Pakistan and Bangladesh seek about 3 million 500 thousand bales of cotton. Demand drives prices up. Exporters of Chinese exports purchase spot goods at a risk of liquidity and store them in China's bonded warehouses. Some of the most expensive Chinese buyers bought India cotton and transported them to their nearest ports.

On the other hand, many American cotton is also transported to China's ports.

Because imported cotton yarn has more advantages than raw cotton. China's textile industry must pay 13% vat for imported cotton. And they import yarn not to be taxed.

According to well-informed sources, the profit of India spinning mill is at least 1 dollars per kilogram. But not all factories have such a good profit. China is very good at negotiating. They bought 30S yarn at a price of 3.20 dollars / kg, and their price was 5.60 dollars / kg a few days ago.

Informed sources say that yarn exports are likely to record 1 billion kilograms. More than 800 million kilograms of yarn have been exported. In 2011, it exported 720 million kilograms, when the government of India restricted cotton yarn exports.

Domestic support helps spinning mills to maintain 85-90% capacity.

Because of the active market, India Cotton Advisory Committee is likely to increase cotton consumption.

But the trouble is India. Cloth Market It's still warm.