"Transitional Period" To Support Cotton Prices "Stable" Centralized Listing To Suppress Cotton Prices Down

From late October to the first half of November, the new cotton concentrated collection period, the domestic cotton market in the new and old alternating period of raw cotton, was stabilized for a short time because of the shortage of resources.

Since October, the raw material inventory of textile enterprises has been bottomed out, and the willingness to replenish the Treasury has been stronger. The number of enterprises purchasing new cotton in Xinjiang has increased, while the listing of new cotton has been postponed compared with previous years. In addition, the market speculation has made the price of seed cotton and lint rise sharply.

From the end of October to the first half of November, China's cotton price index CCindex3128B rose slightly by 17 yuan / ton, running at 14786 yuan / ton in November 15th.

11 from the second half of January to the first half of December, cotton market ushered in the third round of falling market.

With the slow demand of new cotton picking and listing and replenishment of enterprises, the market is gradually cooling down, and the textile and fur trade for purchasing lint has also been withdrawn in the early stage, and the price of lint trading in Xinjiang platform has dropped.

The worries of oversupply caused by the new cotton concentrate listing are coming down like the "cold wave". The downward trend of the international market has also made the domestic market bearish sentiment intensified, while the purchase price of the lint cotton in a large textile enterprise in Shandong has been frequently reduced (the cumulative reduction of 1300 yuan to 13000 yuan / ton), and the limited purchase has severely weakened the cotton market and become the trigger for the acceleration of the downtrend; the terminal market has been depressed, and the lack of consumption has made the cotton market clear and the pressure of cotton sales doubled.

Cotton market is again showing the stalemate that cotton farmers are unwilling to sell, cotton enterprises dare not accept, and textile mills do not want to buy at the early stage of listing.

11 from the second half of February to the first half of December, China's cotton price index CCindex3128B decreased by 1145 yuan / ton, or 7.74%, and in December 15th it ran at 13641 yuan / ton.

In the second half of 12, the spot price of cotton began to drop sharply, and again weakened and consolidated until the end of the year.

At the end of the year, the raw material inventory of textile enterprises was once again in urgent demand. Meanwhile, the market rumors that the new year quota issuance was linked to the purchase ratio of Xinjiang cotton purchase (time limit for December 31st), stimulated the cotton mill to concentrate on buying Xinjiang cotton, set off a wave of replenishment market, and supported the spot price of domestic cotton to stop and stabilize.

Mainland textile enterprises also increased their enquiries and purchases.

But the replenishment is mainly made of high quality lint and high-grade cotton. The quality of cotton in the market is always facing the problem of unsalable sales, and the overall purchase and sale of cotton is still cold.

Annual statistics show that China's cotton price index CCindex3128B has decreased by 5929 yuan / ton, a decrease of 30.35%. At the end of the year, it was running at 13605 yuan / ton price, which was 732 yuan / ton higher than that of electronic 1501 contract, and 420 yuan / ton higher than that of Zheng cotton futures 1501 contract.

Under the pressure of continuous downward cotton prices and consumer demand, and the impact of imported cotton yarn and cloth, the market situation of pure cotton gauze is weak and difficult throughout the year.

The market was sluggish, the varieties were scattered, scattered in bulk, there was no bulk trade, and the price declined, but the decline was less than that of cotton.

It is difficult for the production enterprises to run their own businesses, they have difficulty in going to inventory, the capital flow is not smooth, the employment problem is also prominent, the efficiency has declined sharply, the scale enterprises are also feeling that the operation is difficult, the number of enterprises that limit, stop, close and pfer is increasing, and the operating rate is insufficient.

After a year of oscillations, the end of the year

The decline has narrowed sharply, the price has dropped to the bottom, and the late fall is limited.

In addition, with the gradual narrowing of the difference between domestic and foreign cotton prices, China's cotton yarn imports have dropped significantly, but Southeast Asia still has an advantage in the field of medium and low count yarn.

Annual statistics: the sales price of pure cotton yarn representative varieties C32S and JC40S decreased by 3695 yuan / ton, 4305 yuan / ton respectively, the decrease was 14.45% and 14.12% respectively, and at the end of the year they were running at 21880 yuan / ton and 26190 yuan / ton respectively.

The price of grey cloth representing variety C32x32130x7047 "twill, JC40x40133x7263" poplin has decreased by 0.44 yuan / m, 0.76 yuan / m respectively, the decrease is 6.89% and 8.52% respectively. At the end of the year, the price of the poplin has been running at 5.95 yuan per square meter / meter, 8.16 yuan / meter.

By the end of 2014,

The market is gradually entering the stage of stabilization. Under the regulation of the marketization mechanism, the domestic cotton market will remain unchanged or maintain a reasonable level of water in the "de Stocking" road in the future.

The pressure of global oversupply will make it difficult for international cotton prices to get rid of the long and weak pattern.

Textile enterprises still can not get out of the shadow of falling cotton prices.

But at the beginning of the new year, a number of favorable policies in China have become apparent.

To encourage

More domestic cotton is used by enterprises. The Ministry of Commerce and the national development and Reform Commission announced that the quota of cotton import tariff in 2015 was still 894 thousand tons, and its Chinese trade ratio was 33%. In 2015, the original quota did not increase the quota, and it would not be sold before the end of March 2015. Only when the total sales of new cotton reached 70%~80%, or if there was a serious shortage of supply or a sharp rise in prices, it would be thrown away.

Supply and demand are in a relative balance, cotton prices are running steadily, and high grade cotton has a significant demand gap, which is an important factor supporting cotton prices in the later stage.

In addition, another difficult problem in the cotton textile industry -- "high levy and low deduction" also ushered in "breaking the ice". In December 31, 2014, the Ministry of Finance and the State Administration of Taxation jointly made a profit tax [2014] 150, raising the export tax rebate rate of some textiles and garments.

In the list of products, the export rebate rate of the 50 chapters, 51 chapters, 52 chapters, 53 chapters, 63 chapters and 94 chapters, and the whole 54~62 export tax rebate rate were increased from 16% to 17%, which accords with the international practice of equal levy and withdrawal, so that China's textile and clothing products will compete fairly in the international market.

This is undoubtedly a good thing for the numerous export enterprises in the textile industry under the complicated background of slowing down of macro-economy and market demand and increasing competition in the international market.

With the continuous emergence of the policy effect and the continuous adjustment and improvement of the cotton policy, it is believed that the cotton textile industry will have a more favorable development environment in 2015.