The Industry Calls For The Marketization Of Cotton Prices To Reduce The "Three High" Direct Subsidy Or Breakthrough.

< p > the state reserves cotton stock is high, the cotton spinning enterprise is difficult to manage, and the cotton futures margin is shrinking. The whole industrial chain of the cotton market is suffering from an unprecedented predicament.

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< p > recently, at the 2013 China International Cotton Textile conference hosted by China's "a target=" _blank "href=" http://www.91se91.com/ "textile" /a "Industrial Federation, participants generally believed that to solve the crux of the current troubled cotton textile industry, we must reform the current cotton management system as soon as possible, and establish a market-oriented pricing mechanism by adopting cotton direct subsidy and other policies and measures.

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< p > the futures industry pointed out that the market pricing will lead to more trend prices of cotton futures prices, and the positions and market levels will be enhanced. Enterprises can better grasp market opportunities and achieve higher profits.

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< p > < strong > cotton "three high": high price, high price difference, high inventory < /strong > < /p >

< p > at the 2013 China International Cotton Textile Conference, the "three high" problem of "a href=" http://sjfzxm.com/news/index_s.asp "cotton market < /a" has made textile enterprises, especially cotton spinning enterprises complain incessantly.

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< p > for cotton textile enterprises, the high cotton price and high price difference make the enterprises lose competitiveness in the global market.

According to Louis Da Fu, in order to protect the cotton farmers' income, China's purchase and storage price is more than twice the cost of cotton planting in the world.

Therefore, the cost of using cotton in China's textile mills is at least 50 cents higher than that in other countries in the world.

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< p > high cotton price has suppressed the demand of domestic cotton, and domestic enterprises have imported large quantities of cotton yarn products from India and Pakistan.

Chen Jiumei, director of China market of PC I fiber consulting company, believes that because of the high price of cotton in China, the cyclical adjustment of cotton production has been affected, and cotton demand has been suppressed at the same time.

The cotton in spinning mill is still not recovered, and some downstream cotton demand is provided by imported yarn.

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< p > "cotton price difference has the greatest impact on cotton textile industry".

Zhu Beina, President of China Cotton Textile Industry Association, said that the price of domestic cotton exceeded 19000 yuan / ton, and the price difference with imported cotton reached 4000 to 5000 yuan / ton. Last year, it reached 6000 yuan / ton. Under such circumstances, enterprises are not competitive, and the finished products can not digest.

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< p > domestic cotton lacks the price advantage. One consequence is the high inventory of national cotton reserves.

Chen Jiumei said that China imported 5 million 300 thousand tons of cotton and 1 million 500 thousand tons of cotton yarn in 2012. Although the price of the international cotton market has picked up and the supply is tight, the import of cotton has been in progress.

China has increased its stock by 8 million tons in the past two cotton years, and will continue to increase in the next year (2013/2014).

China currently estimates that there are about 10 million tons of cotton stock, equivalent to 1.25 times the amount of one year.

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< p > Chen Jie Mei worries that at present, China's cotton stocks have exceeded the amount of consumption. The biggest problem in China's cotton market is where the stock goes and how long it takes and who will consume it.

If a large number of stocks are sold, the global cotton market will be substantially adjusted.

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< p > < strong > late < a href= > http://cailiao.sjfzxm.com/Matertial/show/default.aspx > cotton price < /a > still in the "policy market" interval < /strong > /p >

< p > industry insiders believe that the high cotton price formed by China's support market policy is abnormal, and the price lacks the due fluctuation.

Cotton prices are plunged into the "policy market" market, and many investors are forced to turn to the outside market, and futures positions continue to shrink.

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< p > "the current cotton market is mainly affected by the policy of throwing and storing and storing, and futures prices will always run around the interval between the reserve price and the reserve price."

Yangtze futures analyst Huang Junfei introduced.

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< p > it is understood that the second round of reserve cotton will be closed in July 31st this year, with a bid price of 19000 yuan / ton (standard level). The new year's storage will start in September, and the price of new cotton will be 20400 yuan / ton.

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< p > Zhao Guoquan, deputy general manager of Meyer futures brokerage company, believes that the influence of the national cotton storage and storage policy on the market can be divided into three stages: first, before the end of the reserve cotton throwing and storage in July 31st, it is expected that domestic textile enterprises will accelerate procurement from 6 to July, and the demand for cotton will be met; two is August, the stage is the policy window period, the market focus is on the outer cotton (the quota for the dumping and storage release) is expected, and the arbitrage opportunities for both inside and outside cotton are expected; three, after September 1st, the new year's storage and purchase will start, and it will still maintain the dual track system of purchasing and storing, throwing and storing at the same time, and the cotton futures price will still run in the range below 20400.

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< p > Zhao Guoquan predicts that from 6 to August, the supply and demand of cotton will be relatively balanced, and the difference of cotton price between inside and outside will remain at 3000 to 4000 yuan.

The main price of zhengmian main 1309 and 1401 contracts will run in the range of 19400 to 20400, of which 1309 of the contracts are mainly affected by the tightness of the launch policy.

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Besides P, the demand for cotton is improved as a soft commodity closely related to the macro-economy. However, the situation of economic recovery which is not optimistic will still suppress cotton prices.

According to the latest report of the business community, although the situation of export warming is continuing, the order of the Canton Fair in 2013 spring is still not as good as that of the same period last year, and the order is half a three month short term, indicating that market confidence is still fragile.

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< p > < strong > the industry calls for the marketization of cotton price < /strong > /p >

< p > because domestic cotton prices are subject to policy guidance, some enterprises and traders speak frankly "cotton is back to the planned economy era".

How to solve this problem that plagued the entire textile industry has been widely appealed to accelerate the reform of the current cotton management system and promote the marketization of cotton prices.

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< p > Wang Tiankai, President of the China Textile Industry Federation, said that since last year, the Federation has carried out a large-scale investigation and Study on the cotton management system and market supply problems. The next step is to put forward measures for direct subsidy, large-scale planting and improved varieties according to the findings of the survey, so as to promote the gradual docking of domestic cotton prices with the international market and restore the market adjustment mechanism.

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Di Hui, deputy general manager of Huarun textile (Group) Co., Ltd. believes that the cotton purchasing market policy now being implemented has made cotton farmers' price expectations always upward, but the interests of farmers and the enthusiasm of cotton planting have not been well protected, and a market-based pricing mechanism should be established. P

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< p > according to the information disclosed at the 2013 China International Cotton Textile Conference, cotton direct subsidy may become a breakthrough in the reform of the market mechanism of cotton.

Gao Yong, vice president of China Textile Industry Federation, said that after more than two years of appeals, the cotton direct subsidy policy has been loosened, and more than ten cotton related departments have unified their ideas.

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< p > Huang Junfei believes that futures itself is a very sensitive financial tool for marketization. Through direct subsidy, it will help to form a market-based pricing mechanism. Cotton will not remain at the current price center, futures price volatility will intensify, and there will be more trend markets, and the level of holdings and market level will be enhanced.

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< p > in addition, some market-based cotton futures new varieties are accelerating.

It is understood that the big business will promote the development of cotton yarn variety demonstration work, further improve the cotton yarn futures contract and system, prepare for the application of the contract listing; Zheng Shang recently held a demonstration meeting on cotton yarn futures contract rules.

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< p > Huang Junfei thinks cotton yarn is a highly marketable variety, and there is a strong demand for hedging in enterprises.

As the cotton market is subject to policy constraints, textile mills, especially some large textile mills, hope to seize market opportunities with new futures tools such as cotton yarn and achieve higher profits.

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