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    Cotton Target Price Reform Will Narrow Domestic And Foreign Cotton Price Difference

    2014/6/17 16:45:00 73

    CottonTarget PriceCotton Price Difference

    < p > reporters understand that due to China's implementation of the cotton purchase and storage policy, the price of cotton has not been in line with the international market. In recent years, the international cotton price has continued to decline, showing a trend of high and low external prices.

    The increasing price of cotton at home and abroad has made Chinese textile enterprises feel under great pressure.

    < /p >


    < p > "in recent years, the cost of raw materials for textile enterprises in China is very high, mainly due to the high domestic cotton prices.

    However, the cost of raw materials of foreign textile enterprises is much lower than that of China, which directly affects the profitability of China's textile export enterprises. The difference between domestic and foreign cotton prices makes textile enterprises feel the pressure of operation.

    Mr. Wang, director of a textile export enterprise in Hunan, said.

    "Due to the high price of cotton at home and abroad, our orders in recent years are becoming less and less."

    < /p >


    < p > Hangzhou City Light Industry < a href= "http://www.91se91.com/news/index_c.asp" > craft textiles < /a > Import and Export Co., Ltd., said that last year some factories in the company were idle in August and September, and the previous 7~9 month is the peak period of processing and production, and there will be no idle situation.

    The reason for the idle situation is that the international market was bad last year. On the other hand, the customers pferred some of the orders to Vietnam and other Southeast Asian countries.

    < /p >


    < p > Hunan Yintai Textile Group has begun to buy Cotton in other countries abroad.

    Reporters learned that Hunan Yintai Textile Group has its own spinning factory, but in recent years they have to buy cotton yarn in Pakistan and India.

    The cotton yarn of those countries is 12000 yuan / ton, but domestic cotton is 19000 yuan / ton, imported cotton yarn is much cheaper than domestic cotton price, cotton yarn imports are not restricted, and industrial chain is seriously hung up. These situations directly impact on China's cotton spinning enterprises.

    < /p >


    Zhu Sujun, director of the group's international trade department, "P > < a href=" http://www.91se91.com/news/index_c.asp "> Shan Shan < /a >, said in an interview with the media that in recent years the export of the group was rather bleak, the pressure was relatively large, the price was very low, and the order volume was becoming less and less. In the past, the order quantity of a single color was at least 500, but last year it was only 200~300.

    < /p >


    < p > Sun Liwu, an analyst with Zhuo Chuang's information market, thinks that the cotton market which has already formed the habit of autumn storage will have a relatively obvious shock after lacking direct support policy.

    In the future, domestic cotton prices will gradually move closer to international cotton prices.

    < /p >


    < p > industry insiders say that after implementing the target price subsidy policy in 2014, the market mechanism will lead the domestic cotton price, and the internal and external spreads will return to the year-round level.

    It is understood that under the premise that China's cotton import policy has not been greatly adjusted, the domestic and foreign cotton price difference is within the range of 1000~1500 yuan / ton, and textile enterprises can afford it.

    The average price of imported cotton to port is around 82 cents, the exchange rate is 6.2, the discount rate is RMB 1%, the tariff quota includes tax, the port pick-up price is about 14100 yuan / ton, the sliding tax includes the tax, the fee pick-up is 14700 yuan / ton, the total tariff, the port port pick-up 17900 yuan / ton and the above prediction, the industry estimates that the average price of domestic cotton in the 2014 year is larger than that of 15000~16000 yuan / ton.

    < /p >


    < p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > temporary storage and purchase policy < /a > abolition of profits from textile enterprises < /strong >, Jiang Hui, President of the China Textiles Import and Export Chamber of Commerce, said that the abolition of the national cotton temporary purchase and storage policy and the implementation of target price reform will bring good results to the industry, and the narrowing of domestic and foreign cotton prices will help China's textile industry to enhance its international competitiveness and increase its export market.

    "It is good news for our textile enterprises to cancel the cotton temporary purchase and storage policy and to implement the target price reform.

    < /p >


    This policy of < p > will reduce the price of domestic cotton and reduce the spread of cotton at home and abroad. Our domestic textile enterprises will be able to buy Cotton with low price.

    The head of a textile export enterprise in Shandong said.

    "Starting from this year, our textile enterprises will no longer be upset by the high price of raw materials."

    The head of a textile enterprise in Henan said that the state's reform of the target price of cotton will reduce the price of cotton at home. The gap between domestic cotton prices and international cotton prices will become smaller and smaller, and the profits of domestic textile enterprises will be gradually increased.

    < /p >

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