Cotton Quality And Price Increase

In September 1, 2013, China began to implement the new cotton standard GB1103-2012 (cotton short pile cotton) (hereinafter referred to as the new standard), and the cotton temporary purchase and storage policy launched in 2013 in September 9th was implemented according to the new standard. The national development and Reform Commission stipulates that the temporary storage and storage areas of cotton in 2013 are: color grade white cotton grade four and above, low grade cotton grade two and above; length class 27 millimeter and above; micron level a, B and C grade C2 files; breaking strength difference and above; length uniformity, low grade and upper; mill quality intermediate and above. The cotton price difference rate was implemented in accordance with the circular issued by the China Cotton Association on August 30th to adjust the "cotton quality difference price list of China Cotton Association".

Cotton yield and quality rise

Prices have been raised.

From the end of July to the first half of August, most cotton producing areas appeared continuous rain, which made cotton production less. However, from recent interviews, it has been found that the fine weather in mid and late 8 has made cotton quality everywhere improve.

Due to the fine weather in Henan, the boll opening of cotton bolls was accelerated in all producing areas. The seed cotton was picked up 75~100 kg / mu in Zhengzhou and Xinxiang. The quality of seed cotton was mainly white cotton grade 2 and 3, and there were a small amount of light cotton grade 2. This year, Henan province suffered flood and waterlogging, and some cotton fields were seriously cut down. However, the weather was better in the later stage, and the new cotton color was white, long and mature. Cotton growers predicted that this year's cotton quality would be reduced and quality increased, which would be beneficial to storage and storage.

Cotton growers in Sheyang area of Jiangsu also generally reflected that the weather continued to be sunny and hot in late August. Although they had some adverse effects on cotton growth in late stage, especially for raising peaches and realizing autumn peach tops, they were very helpful to control cotton growth. The field microclimate promoted the cracking and opening of cotton bolls, and the rotten peach with dark mildew was obviously less than that of the previous year. Judging from the quality of the cotton that has been picked up now, it is totally up to the new standard white cotton grade 4. As long as a little sorting is done, part of it can reach the requirement of white cotton grade 3.

Because of the good quality of cotton and the decrease of cotton planting area, cotton farmers are reluctant to sell more heavily, and the price of cotton has increased. At present, the price in most areas is around 8.4 yuan / kg. Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, said that the purchase and storage of cotton in Dezhou area had begun, and the price was 8.4 yuan / kg, which was 0.15 yuan / kg higher than that of the same period last year. For cotton farmers reluctant to sell, Ma Junkai has other views. He believes that this is also related to sales habits, "cotton farmers usually pick all cotton and then sell, picking part of the sale will be more troublesome, some of the needs of cotton farmers will choose to ship now."

Quality requirements are stricter.

Pressure on processing enterprises

Since this year is the first year of the implementation of the new cotton standard, and the announcement of the China Cotton Reserve Management Corporation announced that the deposit receipt will raise the deposit margin from 300 yuan / ton to 500 yuan / ton, and it is clear that the enterprise is responsible for the storage and storage of cotton for life. The new year's collection and storage will be carried out according to the color level added in the new national standard, especially for the quality of the rolling mill, the regularity of length, the ratio of fracture, and the index of foreign fibers. Spin Enterprises generally believe that the policy of purchasing and storage is formulated in strict accordance with the principles of the new national standard, which will play a regulatory and guiding role in the processing enterprises. This year, the quality of reserve cotton is expected to be improved.

At the same time, in strict collection and storage standards and strict regulations for the storage and storage enterprises, this storage and storage is heavy and weight, which has brought a lot of pressure to cotton processing enterprises. A Hunan cotton processing enterprise official said, at present, the enterprise acquisition cotton is more cautious, strive to keep good quality in the storage, prevent cotton quality problems, loss of interest.

According to the insiders, at present, the cotton plant of Kai scale is trying to acquire, process or even inspect the products, and has a clear desire to grab resources, but the actual profit is not ideal. Last year, more than 4 cotton is in the storage area, and this year more than 3.5 will enter the storage. Therefore, the quality problems that occurred during storage and storage last year are expected to be avoided this year.

In terms of reserve cotton loans, this year's storage and purchase will take a one-time payment method, and the margin will be raised to 500 yuan / ton. This is bound to affect the overall acquisition and operation of the cotton mills which are not enough funds. Some people in the industry believe that the probability of irrational phenomena such as large-scale losting will be significantly reduced. Cotton enterprises will strictly control costs, and small businesses may cooperate with large enterprises due to insufficient funds. In addition, the purchase and storage of Xinjiang area will be limited by time limit auction according to the inspection volume of processing enterprises and the daily acceptance capacity of storage and storage. The difficulty of storage and storage will increase significantly, and the progress of enterprise storage will be more restricted.

New national standard requires meticulous details

The cost of cotton is expected to decline.

This year, the purchase and storage standards are implemented according to the new cotton standard. This is a good thing for cotton enterprises. The regulations on the quality of the mill, the regularity of length, the ratio of fracture, and the index of foreign fibers make the textile and cotton enterprises a lot of trouble. In the interview, we know that under the original cotton classification standard, the cotton used by textile enterprises usually has their own standard. No matter how the cotton is purchased, the enterprises are reassessed according to their own standards. The procurement is carried out according to the grade standard stipulated by the state, and cotton blending adopts the self determined standard which emphasizes physical indexes. The new cotton standard has been refined to 4 color types and 13 color grades. It is very close to the "cotton matching standard" of the enterprise's habits, so that the standards used by the enterprises in purchasing and cotton blending are consistent. It can completely solve the problem of uncoordinated use of cotton and the purchase price of the cotton, thus reducing the cotton inspection link and reducing the cost of cotton consumption.

Some analysts said, "this year is the first time to implement the new national standard of cotton. The cotton inspection will be more meticulous and strict. If we exclude human factors, the quantity of cotton that meets the standards of storage and storage will be less than last year. It is estimated that 5 million tons of storage will be collected and 80% of cotton output will be imported. Statistics show that in 2012, 6 million 506 thousand tons of cotton were collected and cotton output was calculated by 7 million tons, and the total amount of cotton accounted for 93% of cotton output. Cotton circulation in the market in 2012 is very small. In the year of 2013/2014, due to the implementation of new cotton standards, the amount of storage will not be too large, and the market circulation of cotton will increase.

At present, from the perspective of the situation, the domestic cotton market is mainly fragmentary. A person in charge of a company in Xinxiang indicated that there were three main concerns: first, the rules of storage and storage required enterprises to be responsible for the quality of cotton for life and the pressure of enterprises. Two, the purchase and storage rules were purchased according to the new national standard. At present, the number of public inspection is still very small. The enterprises are hard to grasp the connection between self inspection and public inspection. Three, there is no suspense about the reduction of seed cotton production this year, while the overcapacity of the 400 enterprises, the battle for resource competition will be repeated, and the enterprises are more worried about the prospect of the purchase. The industry is expected that most cotton enterprises will not start trading until the end of September, slightly delayed than last year.