Cotton Prices Are Not Optimistic. Cotton Market Has Fallen Sharply In The Off-Season.

"6, July is Spin In the off-season of traditional sales, our monthly orders fell by nearly 70% compared with last month, and I'm afraid this will continue for some time. " The head of a medium-sized textile factory in Dongguan told reporters on the futures daily that the cotton spot market is basically stable at present, but with the arrival of the off-season, the price of cotton in the later stage is not optimistic.

Reporters in Guangzhou, Dongguan, Foshan and other textile enterprises also understand that many textile enterprises have a certain decline in the order volume. In the Kaiping area, some of the looms that were put into production soon had no orders and even broke the capital chain, so they had to sell the almost new looms.

"Most of our local textiles are exported to overseas countries. Besides the influence of off-season factors, the rising RMB exchange rate is also very unfavorable for textile exports. Chen Chen, director of Dongguan Chao Shun textile accessories company, said the company's textile accessories were sold throughout the country. After entering the off-season, the order volume dropped by nearly half, and the start-up rate was greatly reduced.

The capacity of the Loom factory to receive goods is limited, which directly inhibits the demand of cotton yarn. At present, domestic cotton yarn inventory is gradually rising. "At present, domestic textile enterprises have about 35 days of cotton yarn inventory, compared with about 30 days before, and there may be a certain increase in the next few days." Guo Yinying, a researcher at Baiyin cotton industry, told reporters.

It is understood that from September 2012 to April 2013, the average monthly import volume of China's cotton yarn was more than 150 thousand tons, and the monthly net import volume was more than 100 thousand tons. "Cotton yarn imports without quota restrictions, the state only levy 17% value-added tax and not more than 5% of import tariffs, although the difference between domestic and foreign cotton prices have narrowed trend, but imported cotton yarn is still more attractive to enterprises." Chen Chen said that with the advent of the off-season, although the demand for imported cotton yarn may be reduced, the price advantage of imported cotton yarn is still more obvious during the difficult period of textile enterprises. "This means that after the off-season comes, the demand for domestic cotton yarn will also be further squeezed by imported cotton yarn."

Recently, the China cotton reserve management company announced that in order to meet the requirements of textile enterprises, the import intensity of imported cotton will be increased. "At present, the turnover rate of dumping and storage is relatively low. The state reserve cotton has not yet announced the 8 to September throwing and storage plan. If these two months do not throw cotton reserves to complete the current year's throwing and storage plan, the transaction proportion in July and July will need to increase from around 28% to about 50%, which means that the throwing and storing of late cotton will increase." Yang Zhijiang, general manager of Shanghai Business Department of Tokyo futures, said that in order to complete the throwing and storage plan, the national cotton reserves may increase the intensity of new cotton and high-grade cotton in the 2012. And measures to increase reserves will obviously create pressure for domestic cotton prices in the coming period.