China Textile Mill Lobbied The Government To Reduce Domestic Cotton Prices And Expand Imports

< p > > a href= "http://www.91se91.com/news/index_f.asp" > China textile mill < /a > lobbying the government, calling for the expansion of cotton imports, because it is difficult for them to find high-grade cotton in the country. If approved by the government, this will boost the prices of major export countries, such as the United States and Australia.

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Traders of P, the world's largest cotton importer, are skeptical. They do not know whether Beijing agrees to increase import quotas. Meanwhile, domestic cotton reserves are still large under the active reserve plan.

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"P > China strictly controls the import of cotton to support domestic growers, which makes it difficult for some textile enterprises to purchase high-quality cotton that they need to produce fabrics for the global clothing brand, and the quality of domestic high-quality cotton is limited.

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< p > increasing import quotas will boost international cotton prices. ICE's cotton contract fell 4% in December last quarter, the weakest quarter in a year because of worries about slowing economic growth in China.

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< p > textile mills also hope that the government will reduce the price of national cotton reserves from 21000 yuan to about 18000 yuan (2900 U.S. dollars) tons.

The price of China is usually 40% higher than that of the international market, forcing many textile mills to suffer heavy losses.

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Yang Shibin, vice president of the national textile and Garment Association, said: "this is a very serious problem, which has lasted for a long time." P

He refers to the problem of restricting imports and higher domestic prices.

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"We hope you will use more a href=" http://www.91se91.com/news/index_c.asp "> cotton < /a > and more domestic cotton," P said in an interview with Reuters.

This will stimulate cotton consumption.

China's cotton reserves plan is closely monitored by the international market. At present, China's reserves are about half of world stock.

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Earlier this year, Beijing promised to issue new import quotas to textile mills, allowing them to buy 3 tons of state reserve cotton and import 1 tons of overseas cotton every year.

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< p > however, due to fierce competition from Asian textile mills, poor quality of national cotton reserves, and lack of certain grades of cotton, China textile mills hope to turn the ratio to 2 to 1.

Yang said that the quality of cotton reserves in China is inconsistent, including stray fiber and chicken and duck feathers.

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< p > he added that the association submitted a proposal to the national economic development planning and Development Commission of China in mid June.

But traders doubt whether the government will increase quotas.

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< p > founder traders, Ma Jun said: "why do they have so much inventory and why allow expansion?" < /p >

< p > another trader said that it is not clear when the quota can be increased. The new cotton in the US will have to wait until the end of October, and most of the Australian cotton has been signed.

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< p > Beijing has said that it will end its sales activities in late July, but traders believe that Beijing may extend its sales activities to August and September, because Beijing has to get rid of old stocks before picking up new cotton in October.

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"P", since January this year, the number of sales provided by China is 9 million 550 thousand tons, up to July 3rd, only 28% or 2 million 650 thousand tons sold, < a href= "http://www.91se91.com/news/index_cj.asp" > cotton price < /a > high and poor quality, so that textile factories do not want to participate in auction activities.

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