How Much Impact Will There Be On The Market?

Issued by relevant departments

In the information coming out of the round, the following statement is stated: "when the wheels are in the new cotton concentrates, they will choose to carry out the development during the listing period. The maximum number of rounds will not exceed 40% of the total number of rounds, and the price will follow the market."

The turnover of this round is estimated to be around 300 thousand tons, and the limit should be over 400 thousand tons, so the corresponding turn in volume is about 100 thousand tons.

Wheel in

The author estimates that there are two cases. First, in view of the slow speed of cotton production in the Corps, some of the stocks will be pferred to the next year.

The role of stability may be directed towards the corps cotton.

Because of the uniqueness of buyers and sellers, then the price will be fixed at any time, no matter what price has nothing to do with the market situation.

The two is for open market procurement. In view of the principle of price being on line with the market, it is very likely that a higher starting price will be set up, which will be auctions from the storage and storage enterprises, and the lower price will be traded.

How much does the rotation affect the market? For the new flower purchase market in the next year, the 100 thousand tonnes of turnover will be a drop in the bucket.

The acquisition of BINGTUAN Cotton has a relatively small impact. If open market downward competition is adopted, the lowest price in the real market will be shown daily to the market participants, and the price will become the pricing anchor for market pactions, and the mindset of stabilizing cotton holders is not the best policy.

What will be the main factors that will affect the market when the new flower is concentrated on the market? It is believed that Xinjiang's confidence in the acquisition of enterprises, the state of its funds and the rental rate of the cotton mill.

Because in the textile mill's general low inventory strategy and traders' cautious attitude, Xinjiang acquisition enterprises will be the main stock holders.

According to observation, this year, the enthusiasm of the mainland cotton enterprises to Xinjiang renting a factory has greatly reduced, and the Xinjiang ginning plant is active in reducing the rent. In previous years, the situation of "no claim compensation of 1000, and the acquisition of 500" could be reversed because of overcapacity.

With the reduction of competitors, no worries, no flowers can be collected, factories will lower the purchase price as far as possible and increase their margin of safety.

What will you discuss in November 2015? Maybe 3 or 4 months later.

If the price at that time is too high to sell, then it will be meaningless.

Too much price than imported cotton will continue to damage.

Industry; if imported cotton is not up to much, the price may still be around 13200 yuan / ton in March 2016. Once the price is set, it will mean the ceiling of the whole year. As the most normal expectation of the purchasing enterprise, it can only sell 13200 yuan / ton after a year, reduce the interest 1200 yuan / ton this year, plus the convenience income of holding the goods 200 yuan / ton, then only when the acquisition cost is controlled within 12000 yuan / ton, can it have operational value.