2014 National Cotton Reserves Will Allow Cotton Trading Enterprises To Participate In Auction.

It is understood that since the end of June, the cotton spot market in and out of Xinjiang is relatively quiet. Besides the South Xinjiang high quality hand picked cotton, there are enquiries and pactions, but the machine picked cotton and real estate cotton have been deserted. However, the price of the national cotton store is higher than that of the spot, and the ICE futures and the rebounding of Zheng's disk have been rebounded.

On 2-3 July, the gross price quotas of hand picked cotton in 2128 (2129) and 3128 (3129) class warehouses in Hebei, Shandong and Jiangsu were 13700-13800 yuan / ton (quoted weight 13400-13500 yuan / ton), 13300-13500 yuan / ton respectively.

As usual, the 7-9 month is the off-season production of the cotton textile mill in the mainland. In addition, it is expected that the new cotton will probably be listed before and after mid September. Therefore, the mentality of purchasing the onlookers with cotton enterprises and operators is more prominent.

Jiangsu, Shandong,

In the analysis of cotton enterprises involved in other fields, the main task of the departments concerned is to "go out of stock", and traders have advantages in terms of fund volume, market supply and demand, etc., and no textile monopoly is conducive to horizontal integration of cotton mills, cotton operators and other agricultural enterprises, so as to speed up the progress of national cotton storage.

Most traders think 2012

After the re inspection of the company, the change in the rate of decline was not great. Some traders even thought that the cotton coming out of the National Reserve would be better than the current cotton and Central Asian cotton.

It is bound to trigger more intense fare increases.

According to some foreign businessmen and institutions, the total number of imported cotton or cotton imports in 2012 is only 200 thousand tons, which is a big probability event.

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When the concentration of CR4 of an industry is more than 40%, the industry can be defined as an oligopoly industry.

At present, the industry concentration of the top three enterprises in PTA is CR3= (1340+660+615) /4335 * 100%=60.32%.

In the environment of excess capacity, the reduction of output by oligopoly enterprises is often not the rise of product prices, but rather the market share of other enterprises is occupied by other enterprises.

In order to gain more market share, enterprises will adopt the means of reducing prices. Other enterprises will only be passive and fall in price for their own market share.

With the development of vicious competition in competition, oligopoly enterprises are bound to "lose both sides".

At this time, there will be conspiracy among oligarchs, because enterprises realize that they are willing to reach agreement on price competition at a higher level instead of competing fiercely with each other.

In this way, each enterprise can get their own economic benefits at a stable high price level, thereby avoiding losses caused by price competition.

Although the collusion in oligopoly market is widespread, the collusion of oligopoly enterprises is very fragile. Once the price reaches a reasonable position, some enterprises will have the idea of resuming production.

In view of this reason, the limited production and insurance price of PTA enterprises can not change the weakness of PTA prices, only can achieve the role of PTA price rebound, it is difficult to make PTA prices rise for a long time and substantially.

So far, the price of PTA has continued for four and a half years.

There are many reasons for the fall in the price of PTA.

First, from 2009 to 2010, the price of PTA was skyrocketing, and the profits of PTA production enterprises were huge. Under the drive of interests, a large number of PTA capacity was approved. However, due to the release of capacity stampede, PTA production capacity increased significantly, and supply volume soared.

Second, the domestic economic growth slowed down, the foreign economy was also weak, the growth of domestic and foreign demand slowed down, and the growth rate of chemical fiber industry was far lower than that of capacity growth.

Third, in the second half of 2014, international crude oil prices were cut down, and PTA cost collapsed.

Fourthly, the state restores and stores as a direct subsidy, and cotton prices gradually move closer to cotton. The fall in cotton prices has led to a fall in the price of PTA alternatives.

These four factors superimposed, resulting in PTA price from 12000 yuan / ton to the lowest 4450 yuan / ton.