In The First 9 Months Of This Year, Cotton Imports Dropped By 42% Compared With Last Year, And The Price Was 6 Years Low.

In the first 9 months of this year, the import of cotton decreased by 42% compared with last year, and the price has been refreshed for 6 years. In July, the sales of textile mills deteriorated significantly. As of the end of August, the average cotton yarn inventory of textile enterprises increased by 30 days compared with the same period last year.

According to the China Cotton Association, China imported 1 million 160 thousand tons of cotton in the first 9 months of this year, down 42% from the same period last year.

The association said that due to the further narrowing of cotton prices at home and abroad and the supply of cotton in the domestic market, the import demand weakened.

On Thursday, cotton prices refreshed for over 6 years to 11990.

Customs data show that China imported 1 million 110 thousand tons of cotton in the first 8 months of this year, and less than 50 thousand tons of cotton imports in September.

According to the report issued by the Foreign Agricultural Service Bureau (FAS) of the US Department of agriculture (USDA) in September, China's cotton mills will purchase 5 million 750 thousand packages from foreign suppliers in the next 12 months starting in August 1st this year, down 31% from the same period last year, to the lowest level from 2002 to 2003.

Output will also decline, which is expected to drop to 25 million 300 thousand in the same period, down 15% from the same period last year.

It has been reported that cotton prices have continued to decline in the past two months, mainly due to market concerns about poor global demand, especially China's demand, because the Chinese government has managed to reduce record size inventories when domestic economic growth has slowed down significantly.

Lin Guangmao's analysis of full-time cotton making and Jianghu title "thick soup savage" pointed out that the demand side of cotton is very weak, while the supply side is still abundant, and the situation of oversupply is likely to increase.

Lin Guangmao from the demand analysis, from July this year, textile factory sales began to deteriorate significantly, by the end of August textile enterprises average cotton yarn inventory increased by 30 days.

At the beginning of the last cotton year, the estimated cotton consumption could reach 700-720 tons.

In that case, production and demand are basically balanced.

If the state is not eager to sell cotton reserves, there will be no room for a sharp downward price for the whole year. From the acquisition period, the state has issued a lot of support policies, such as encouraging social responsibility enterprises to buy the market, buying new territories cotton instead of import quotas, and not throwing them before the end of March, and selling 80% of them before they sell them.

meanwhile

Sales are brisk. A large number of textile enterprises rush to buy lint in Xinjiang, even willing to spend more than 1000 yuan per ton.

The resultant force of these conditions resulted in a rebound in Xinjiang cotton after eleven.

If textile is indeed as optimistic as we think, prices should not go down.

However, the fact is that domestic textile consumption is far from 7 million tons, and the rebound is just a flash in the pan.

At the same time, this year there is no social responsibility enterprise to buy the market, not buying new territories cotton quota change, no commitment to dumping.

Textile enterprises did not rush to buy in Xinjiang.

The two big engines supporting the short-term takeover price, the government and the textile industry, have stalled.

It is also impossible for a cotton ginning factory to grab goods.

And without the funds of textile enterprises and middlemen, it is even more impossible for a ginning factory to be a "fool."

In addition, the main regiment supporting cotton prices eventually smashed their goods into their own hands.

This year, it is very difficult for the corps to continue to carry on their own.

At the end of supply, though Lin can not know how much capacity and production scale will be reduced, even if the output is reduced by 5 million tons, there will be no shortage of cotton.

Lin Guangmao believes that, considering the embarrassment of the state's preparation of 1 million tons of cotton reserves in the first half of the year and the eventual throw of only sixty thousand tons, the market seems to face more pressure of throwing and storing up in the future.