Domestic Textile Industry Is Coming In Spring Or Quietly.

China Cotton Association According to recent surveys, the area of cotton planted in China has continued to decline, the lowest in 10 years. Experts say that the reduction of cotton planting area means that the raw materials of textile industry tend to be tighter. For textile industry, raw materials of cotton textile processing enterprises are processed, and they can sell a good price. After two years of industrial downturn, the spring of cotton textile industry seems to be coming.

The decline of cotton seed enthusiasm leads to shrinking area.

According to the China Cotton Association survey, 2013 Cotton area It is expected to drop by 6.8% to 68 million 180 thousand acres, the first time in ten years that it has fallen below 70 million mu. The most obvious decline in the the Yellow River River Basin, especially in Henan, has been transformed from a major cotton producing province to a small cotton producing province. Earlier, some experts estimated that the 2013/14 cotton planting area in the United States is expected to be 9 million 800 thousand acres, 19% less than that in 2012/13.

It is understood that the decline in domestic planting area mainly concentrated in the mainland, especially in Henan, Shandong, Hebei and other traditional cotton producing areas. Experts say the main reason is that cotton cultivation is time-consuming and rural labor is scarce. In the past, the cotton planting mode of small-scale peasant economy was facing challenges, and it was also difficult to scale production. Farmers' enthusiasm for planting cotton was greatly reduced, so planting area has been on a downward trend in recent years.

Xu Zhou, a futures analyst in East Asia, believes that domestic cotton planting area is expected to decline in 2013. The main reason is that the relative profit of cotton planting is decreasing. Although the state has issued a policy of collecting and storing for two consecutive years to ensure farmers' cotton planting income, but because the lowest grain price is rising and the overall price of cotton is decreasing, the planting intention of the Yangtze River and the the Yellow River River Basin has dropped particularly. In addition, in 2011 and March 2012, the state issued a temporary purchase and storage policy, which has not been officially announced this year, and has also affected the enthusiasm of cotton growers.

Global oversupply of cotton will improve.

At present, the global cotton is still in a loose pattern. The market expects that the global cotton output will decline in 2013 and consumption will also pick up. Therefore, the pattern of global cotton supply and demand will be improved.

According to the February global cotton production and consumption forecast balance sheet released by Cotlook (Caunt Luke), the world's cotton output in February was 24 million 299 thousand tons, 1 million 904 thousand tons less than the current year, and the global consumption of 23 million 154 thousand tons, an increase of 487 thousand tons. All this indicates that the serious surplus situation in the next year will be improved.

Shanghai mid-term analyst saw thunder, said that from the perspective of overseas consumption, Europe and the United States continued to recover slowly in 2013, textile and garment export situation is still not optimistic, but it is better than the situation in 2012. It is estimated that the total two items of textile and clothing exports will reach 273 billion 250 million US dollars, and the growth rate will rise to 8% over the same period last year. We should note that this figure is still at a relatively low level in the past 10 years. In addition, from the perspective of domestic consumption, China's new year's macroeconomic regulation and control policy will focus on expanding domestic demand and promoting urbanization, and textile consumption demand will increase or increase year-on-year.

In particular, domestic and foreign cotton prices, experts generally believe that the improvement of supply and demand pattern, to a certain extent, good global cotton prices; but domestic cotton prices are subject to high inventory and policy regulation, it is difficult to rebound sharply.

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Xu Zhou said that global cotton stocks are mainly concentrated in China, so the supply and demand of foreign cotton is not particularly loose. From the trend, cotton prices both at home and abroad have gradually bottled out, especially in the past 4 months, the US cotton rose more than 30%. Considering domestic cotton throwing and quota policy, domestic demand for imported cotton is still increasing, and US cotton still has a driving force.

Cotton textile industry is coming?

Reporters recently learned from the Agricultural Department of the autonomous region, Xinjiang, China's largest cotton producing area this year, the cotton planting area is 15 million 398 thousand mu, a decrease of 1 million 62 thousand mu compared with the previous year, and the decrease of the cotton planting area, which means that the raw materials of the textile industry tend to tighten. For the textile industry, the raw materials of the raw materials of the cotton textile processing enterprises can be sold for a good price after processing, and after two years of industrial downturn, the spring of cotton textile industry is coming.

According to the statistics of the General Administration of customs, China's textile and apparel exports reached US $16 billion 480 million in February, an increase of 69.7% over the same period last year. In 1-2 months, China's textile and apparel exports totaled 41 billion 170 million US dollars, up 31.8% over the same period last year. In this regard, Xinjiang cotton textile industry said that the main factors affecting the cotton textile industry were the consumer market and export trade factors, and the reduction of textile and garment export trade was the main reason for the downturn in the cotton textile industry in recent years. At present, the world economy in Europe and the United States has been warming up, and consumption has shown an upward trend. Therefore, the export of domestic cotton textile manufacturing enterprises will gradually increase.

In the early March, the most profitable subsidiary of *ST before the transformation of the new agriculture company announced the formal resumption of production. The new agricultural cotton pulp had realized a net profit of 44 million 180 thousand yuan in 2010, but in 2011 the cotton textile industry came to the end of the winter, plus business factors. The loss of the new cotton pulp was as high as 380 million yuan, and it was closed in October 2012. According to the company's introduction, the commencement of production is the comprehensive cotton pulp market and raw material storage situation before deciding to start production.

In addition to the decision to start production of the new cotton pulp this month, another cotton processing enterprise in Xinjiang, a new cotton processing enterprise (600540, stock bar), voluntarily handed over 38 tons of cotton yarn to Zhejiang and began large-scale recruitment of the truck drivers this month. It is expected that production will start soon.

On the policy level, Cotton textile industry As a pillar industry and a traditional advantageous industry in the corps development, the Corps carries out phased subsidies for cotton spinning enterprises, and guides cotton and cotton company to supply cotton production to cotton spinning enterprises in the fourth quarter of 2012 to the first quarter of 2013, and relaxes the settlement period, and gives the 5/1000 discount subsidy to cotton and hemp company, so as to ease the liquidity pressure of the cotton spinning enterprises. In addition, it also gives cotton textile enterprises corresponding support in power supply and transportation.