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The High Storage Of Cotton Is Faced With Two Difficulties.

2014/7/16 13:40:00 8

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the total consumption of cotton in the world is only 24 million tons a year, of which China consums 8 million tons a year.

China's about 10000000 tons of inventory has made the world's cotton market unbearable, becoming the main factor to curb global cotton prices.

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the reason for the high stock of cotton is the high price policy.

Although the high price of storage and purchase has raised the enthusiasm of cotton growers to some extent, it has also made the cotton market seriously out of the market rule, and the supply increase has not been timely digested by the market, resulting in long-term inventory growth.

when the stock has accumulated to more than ten million tons, the market has begun to worry.

It is not excessive to describe the upstream and downstream enterprises of the domestic cotton industrial chain with the "danger". The current cotton market policy is also in a dilemma: if the inventory is sold, cotton prices will be hit hard, and the sharp fluctuations of the market will seriously hurt the upstream industry of cotton. But if the price is kept high and the financial pressure is too high, it is impossible for the country to continue to pay the bill.

in addition to huge capital occupation and warehousing costs, long-term storage of cotton is another thorny problem.

According to the current market standards, cotton is down one level every year for storage. This means that even if the factors of market decline are not considered, the stored cotton itself will depreciate over time, and the problem of who will bear the depreciation of future huge stocks will be in sight.

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in order to alleviate a series of problems brought about by the high inventory of cotton reserves, the current domestic sales policy is "forced" bundled by state cotton and imported cotton.

If a textile enterprise needs to buy 1000 tons of cotton, according to the current quota system, it can only buy 250 tons of cheap imported cotton, while the rest must purchase high priced domestic cotton.

Mr. Tan, the head of a textile enterprise in Hebei Province, told reporters that at present, it is very difficult for the national cotton store to be recognized by the market, but many enterprises have no way to produce.

When the national reserve store and store cotton, because of the high price of storage and storage, many high-grade cotton is mixed with low grade cotton for storage. This is the "hidden rule" of the national reserve cotton collection.

This blended cotton can not reach the standard of high end cotton yarn, and spinning low-end cotton yarn is too wasteful.

Mr. Tan also said that if all imported cheap cotton is used, about 3500000 yuan per 1000 tons of cotton can be saved.

in the past 3 years, because of the deteriorating market supply and demand situation, the price of cotton in the international market has continued to decline, while domestic cotton prices have risen slightly because of the policy of purchasing and storage, so the price gap between domestic and foreign markets has been widening. The current price difference has reached 4000 yuan to 5000 yuan per ton.

in regard to the proportion of 3:1 quotas currently issued, it is better to let textile companies pay for high priced inventories than to give enterprises a certain amount to reduce costs.

As the cost no longer has the advantage, the situation of cotton textile enterprises is becoming more and more serious.

cotton textile enterprises should not only overcome the cost disadvantage of high priced cotton, but also compete with the cheap labor force in Southeast Asia.

Many domestic cotton textile enterprises export orders at present, mainly in quantity. In order to maintain their customers, it is almost zero profit. Some enterprises have begun to plan to cut production or even stop production.

data show that < a href= "http://www.91se91.com/news/index_c.asp" > cotton market < /a > Industrial inventories continue to increase, while cotton textile enterprises have significantly increased product inventories, which are currently maintained at 30 days to 40 days.

Cotton textile enterprises have become increasingly depressed due to tight capital, reduced orders and increased sales pressure.

Against this background, it is difficult for cotton spinning enterprises to digest a large number of enterprise inventories by expanding the scale of production, and the harsh reality is forcing the management system of cotton city to be reformed.

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The self regulatory role of the P market is being mentioned more and more. Cotton market is still mainly guided by policies, and the supply and demand level even ignores the deterioration of supply and demand, allowing inventories to rise to about half of global consumption.

Some enterprises and traders have no secret of claiming that "cotton is still in the era of planned economy".

At present, the cotton and even the textile industry chain has reached the level of reform. Although management has not revealed the specific points and Strategies of the reform, early discussions on cotton direct subsidy policy have begun.

the biggest role of collecting and storing is to ensure the enthusiasm of cotton growers. But in the past two years, the effect of cotton planting area is not ideal.

Although the storage and purchase price increased by 600 yuan per ton in 2012, the planting area decreased by 10% over the same period last year.

Although the price of storage and purchase has been raised, the price of key factors related to cotton production has gone up badly, and the planting income is not ideal.

Liu Chunfang believes that management and the upstream and downstream industries should be taken action to solve the current crisis.

In order to protect the interests of cotton farmers and stabilize the cotton planting area, we should gradually release the policy of collecting and storing money that has become a "chicken ribs" and turn it into a direct subsidy policy, so that the market can adjust itself.

Cotton growers should learn advanced planting techniques to promote the scale and mechanization of planting so as to reduce costs.

Below P > downstream, cotton textile enterprises are facing great difficulties at the moment.

The competitiveness of textile enterprises in Southeast Asia has gradually increased, and China's share in the main export markets such as the European Union and Japan has declined.

Some small and low-end textile enterprises are badly hit by the impact, but they also objectively push the textile enterprises to upgrade their industries.

Now some enterprises have begun to make up for the inferior cotton price through technological progress and variety development.

But even the efforts of industrial upgrading can only make up for the limited cost gap. Most professionals believe that the difference between domestic and foreign cotton price of 2000 yuan per ton is the maximum limit that domestic textile enterprises can bear.

for the current excessive inventory, we can not let it go at once, but we can not continue to "consume".

Regulators should buy part of the inventory depreciation, and then reduce the cost of purchasing cotton, so as to stimulate the enthusiasm of production and processing.

At the same time, we must strictly control the quality of newly harvested cotton and avoid the appearance of "blending cotton".

Many professionals interviewed by reporters generally agreed that the reform of the current cotton management system is imminent and the market pricing mechanism should come at an early date.