Cotton Target Price Reform: Cotton Quality Has Been Improved

Xinjiang is the most important cotton production base in China. Cotton production accounts for more than half of the country's total. However, after three years of temporary cotton purchase and storage policy, the quality of cotton has declined sharply, which has greatly restricted the production of textile enterprises.

After the implementation of the target price reform pilot, the quality of cotton has been improved. According to the reports of some executives, the former buyers came back. National cotton reserves It can hardly be used. There is everything in the cotton, but now the cotton is much cleaner and the quality has improved a lot.

At the same time, some of the head of the ginning plant also said that enterprises now attach great importance to quality. quality Bad cotton is not sold at all.

Hao Peixiang pointed out that cotton Target price To a certain extent, reform has led cotton farmers to focus on the market, improve the quality of cotton, and help enterprises develop high quality products.

"From the present point of view, cotton production and processing enterprises directly face the market, pay more attention to the control of product quality, and the quality of cotton in storage is better than in previous years." Liu Weidong stressed that despite the current adverse weather effects, the quality of cotton in storage is still better than last year.

According to relevant data, by the end of February this year, the proportion of white cotton grade three or above in Xinjiang was over 90%, and the average length of cotton was 28.82 millimeters, which was 0.29 millimeters higher than the previous year's average. The proportion of Grade A and B was 85.65%, which was 5.21 percentage points higher than that of the previous year. The average breaking strength is 27.92 grams per cow, which is 0.52 percentage points higher than that of the previous year.

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Driven by unexpected events and the rise in international crude oil prices, the price of PTA has risen sharply in recent years. But with the partial restart of PTA devices and the weakening of demand for downstream polyester, the PTA market is facing adjustment next week. On the whole, the pattern of medium and long term TA surplus in PTA has not changed fundamentally. PTA will maintain a weak trend of shocks. The market outlook is concerned about PTA factory maintenance and downstream demand changes, and industrial customers can try to buy PX hedge PTA operation. Operational recommendations are mainly short air.

Reboot device is more, start up to nearly 70%. Demand side, polyester start up to 84%, weaving started at 80%, at present, PTA supply and demand tight state eased, in the micro to inventory stage. At the cost end, PX is equivalent to PTA cost of 5280 yuan (600 processing fee). At present, PTA dynamic processing fee is 500 yuan, PTA is driven by chemical industry in the short term to maintain high and volatile trend, and the middle line operation will continue to maintain more thinking. But we need to pay attention to the rhythm. At present, we wait and see, arbitrage waiting for more than 9 of 1 of the 91 Ping Shui, 1, and pay attention to the later stage of the operation of the PTA. TA1509 breaks down 5380 front-line support, and prices may be the next platform.

At present, crude oil is stable above US $55, which will give greater support to downstream products, but we should pay attention to the fact that the stock of crude oil is still high, and the possibility of a sharp rebound in the short term is less likely. At present, PTA has overhauled many devices, and its operating rate is only about 60%. The motive force for short-term PTA rise may come from this. We need to pay close attention to the start-up trend of the device. Downstream polyester and Jiangsu and Zhejiang looms are experiencing a small peak in 3 and April, and demand is relatively strong at present. However, the PTA stock is currently up to 2 million 500 thousand tons, and it will take a while to go out of stock to curb the possibility of PTA's continuous rise.