Three Reasons For The Rapid Decline Of Cotton Imports In China

According to the data, 6-10 months in 2015

Imports were 162 thousand tons, 106 thousand tons, 70 thousand tons, 51 thousand tons, and 42 thousand tons, respectively, and fell sharply month by month; in 2015, the total volume of China's total

About 1 million 200 thousand tons of foreign cotton, a decrease of 42% compared with the same period last year, since 2015/16 (9-10 months) total imports of 93 thousand tons, a decrease of 54.5% over the same period, and China's cotton imports showed a rapid decline.

So what is the quality of cotton picking, Australian cotton and Brazil? Is India government restricting cotton exports? Or is it a serious shortage of cotton import quotas?

First, China's cotton consumption capacity has fallen sharply, not only

Pakistan, African cotton and other low class flowers demand "waist cut", to high quality machine acquisition cotton shopping also to a few steps.

In 1, 2013 and 2014, China's cotton yarn imports exceeded 2 million tons, equivalent to 230-250 tons of lint cotton.

Cotton yarn imports flooded, forming a "four sides encirclement and suppression campaign" for China's small and medium sized enterprises. Cotton yarn production under C32S and below has dropped sharply, and the demand for medium and low grade lint cotton, including India cotton, has decreased rapidly.

In 2 and 2014, Xinjiang cotton was characterized by "short length, large horse value and low strength". Although 1 million tons of national cotton stores were planned according to the plan (the actual turnover was more than 60 thousand tons), the annual import volume of cotton imports was 1 million 671 thousand tons, down 1 million 329 thousand tons compared with that of the previous year, and the reduction was 44.4%. However, the high grade and high quality cotton did not show a gap. Cotton prices began to decline from the acquisition in September, and did not give any cotton enterprises or operators any opportunity to unlock, indicating that the "brakes" of the high-grade cotton consumption capacity were not small.

3, including the Agricultural Development Bank, credit cooperatives and other commercial banks continue to weaken credit support for cotton textile enterprises, not banks do not lend, but most of the small and medium-sized textile enterprises are unable to meet the loan requirements for various reasons.

Two, the quality of Xinjiang pickling lint has been continuously improved, and the impact on American cotton, Brazil cotton and Central Asian cotton (mainly Ukraine cotton) is relatively large.

1, about the "three silk" problem.

The Xinjiang production and Construction Corps has improved (thickening) the plastic film; increased the number of cotton varieties adapted to machine production; strictly controlled the cotton seed entering the factory when purchasing, and reduced the "three silk" content of some karma plants to 0.3 grams / ton, which is comparable to that of the United States cotton and Australia cotton.

2, impurities such as leaf chips.

At present, China's machine picked cotton varieties have not yet reached the 7-10 day interval of early, middle and autumn peaches, but by unified drip irrigation, fertilizer application, uniform topping and spraying, uniform spraying of defoliant (adjusting spraying amount) and other measures have reduced the difference of seed cotton in the same place, and cotton pickers are working at the same height as possible to reduce leaf dust mixed into seed cotton.

Three, the price difference between US cotton and Australia cotton after the customs clearance and the domestic cotton price are too large, and the India government has been vigorously collecting and storing since 2014, resulting in a high price of India cotton, and does not give the Chinese cotton enterprises the opportunity to pay full duty import.

1, 2014/15 port has cleared SM, GM grade cotton, SM class cotton net weight quoted price is higher than Xinjiang 2000 yuan / ton, 1000 yuan / ton or more, textile enterprises have indicated that they can not digest; 1%, the high rent and pfer price of tariff quota is the main culprit.

2, the India government has set up a relatively high MSP price and started to collect and store it by CCI. It is "bottom up" for India's domestic cotton price. India cotton is no longer cheap in the United States and the price is no longer cheap. The way to pay 40% full customs duties for importing India cotton is completely blocked. India cotton's proportion of China's cotton imports has declined sharply.