How Should The "Import Cotton" Cake Be "Segmented"?

Some importing cotton traders contacted by reporters believe that the domestic import cotton market is in a relatively difficult period. Due to the huge stock of the national cotton storage bank, the government is eager to consume the inventory, and has taken measures to control the quota distribution and improve the import tariffs of low quality cotton. This makes the import cotton market less than the past, and the sales and marketing activities in the market are also slightly depressed.

At the same time, imported cotton prices continue to rise, and has reached the upper limit of textile enterprises' capacity, which is not conducive to traders to carry out business.

However, most traders are optimistic about the prospect of imported cotton market in the future.

According to China's accession to the WTO treaty, the quota of imported cotton will eventually be abolished. At that time, the import and export of cotton will flow freely to Tonghua. In the face of the huge demand of domestic textile enterprises for imported cotton, the market will have vast space for development.

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< p > Li Nan told reporters that in recent years, the possibility of our government's complete liberalization of the import cotton market is not great. Now the government is mainly adopting some regulatory measures to restrict the influx of low-quality cotton, so that the market can have time to digest huge stock of national reserves.

From the perspective of direct subsidy policy only started in Xinjiang cotton region, the government may consider abandoning the inland cotton area.

Because of the low planting efficiency, the planting area and output of the inland cotton area in China are decreasing year by year. At present, only farmers in Hubei, Hebei, Shandong and other provinces retain the tradition of planting cotton all the year round, while farmers in some inland cotton areas such as Henan are more willing to grow other crops.

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< p > compared with American cotton and Australian cotton, the biggest disadvantage of domestic cotton is low quality. But if we separate Xinjiang cotton from imported cotton, its quality difference is not large.

In the future, once the import cotton market is completely liberalized, it is estimated that Xinjiang cotton will be able to compete with imported cotton.

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< p > it is understood that in Xinjiang < a href= "http://www.91se91.com/news/index_c.asp" > cotton area < /a >, the quality of Xinjiang cotton has been improved as a result of large-scale planting and popularization, and the area of machine picked cotton has been expanding in recent years.

In addition, under the guidance of the relevant preferential policies, the cotton planting area and output of Xinjiang area have increased year by year, and the market share is also increasing.

According to the data released by China Cotton Association, the total output of cotton in China in 2012/2013 is 7 million 400 thousand tons, of which Xinjiang cotton reaches 4 million 600 thousand tons, accounting for 62.16% of the total output of the country.

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< p > this year, the government intends to control and reduce the quota issuance, resulting in a large reduction in the number of cotton for customs clearance.

At present, most of the cotton traders in the bonded area are aware of the need to do more "RMB cotton", that is, "moving bricks" for cotton after customs clearance (refers to the trade between traders between traders).

However, because of the limited market resources, this kind of "brick moving" business gains less and less.

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< p > larger a href= "http://www.91se91.com/news/index_c.asp" > traders < /a > are keen to do "dollar goods", that is, for non customs clearance of cotton pactions, some enterprises even order their own overseas.

There are two problems in this paction.

First, after ordering abroad, the time from shipment to arrival is longer. In this period, the price fluctuation situation can not be determined, and a price protection and risk aversion is urgently needed.

Two, after signing a contract with an international trader or a first-class trader, the enterprise wants to buy profits by means of low purchase and high sale. It often dared not rush to operate on the premise of judging the right time and market. The main reason is to worry about the risk of operation.

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< p > in the course of the investigation, the reporter realized that most traders were interested in hedging, price protection (category option business) and cross variety arbitrage operation of < a href= "http://www.91se91.com/news/index_c.asp" > Import Cotton < /a >, and hoped to get the shaped operational mode and financial products.

However, our country has not yet opened up the international cotton futures market, and traders need to borrow Hongkong.

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Zhang Wenmin, general manager of cotton industry division of Wanda futures, said that the import cotton market is changing. When the market is completely liberalized, the risks faced by traders, cotton enterprises and textile enterprises will increase. These enterprises need to make use of the domestic futures market to avoid operational risks. P

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< p > for large traders and textile enterprises, the market development strategy and business objectives should be determined as early as possible.

First, it is clear that participating in the futures market is a strategic decision for long-term development of enterprises.

Enterprises should pay attention to the trend that Zheng cotton futures market tends to grow at a high speed.

Two, we should learn to use the low risk and efficient mode of cash management, so that enterprises can become the leader of the cotton market. We should take the opportunity to set up an efficient and comprehensive new mode of operation, and steadily enhance market competitiveness and risk tolerance.

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