Cotton Textile Industry Upstream And Downstream Topics Of Great Concern

The "quantity" inventory of national cotton reserves has always been a topic of great concern to the cotton textile industry in the upper and lower reaches of our country. In the operation of cotton textile industry in 2016, tens of millions of tons of national cotton stocks will still have an important impact on the development of the industry.

At present, the global cotton fundamentals are expected to improve, supply is expected to decline, consumption is expected to increase slightly, cotton futures stocks are expected to decline. But the scope of supply and demand is limited, and global cotton stocks are at a high level, especially in China. Although domestic cotton output and import volume both showed a marked decline in 2015, there was a certain support for cotton prices, but the demand for downstream cotton also declined, and domestic cotton formed a "tight balance" situation.

In addition to the stock of state-owned cotton stores, the normal cotton inventory of cotton textile enterprises is also a headache for enterprises. Zhang Xianshun, chairman of Henan Ping Mian group, said that because of the downward trend of cotton prices in China, the yarn price of the downstream also declined, which caused the order loss of cotton spinning enterprises to be serious. Stock Reduce the minimum to relieve pressure.

Judging from the current state policy, the digestion of China's national cotton stores depends entirely on the rotation, but because the enterprises do not buy it, the amount of cotton produced by national cotton reserves is very limited. Textile cotton enterprises are not interested in national cotton reserves, mainly because of high price and poor quality. Therefore, there is a business proposal: "we should export the national cotton to the international market and see what kind of price the international market can accept, so that we can both digest the stock and see the price level of our cotton reserves." Although this statement is unlikely to be realized, it reflects the attitude of textile and cotton enterprises to China's national cotton reserves.

It is understood that China's annual storage capacity of about 10000000 tons of cotton reserves amounted to several billion yuan, and all concentrated in the period from 2011 to 2013, during the period of temporary storage and storage of cotton. Therefore, in order to adjust the stock structure, reduce the financial burden and reduce the size of the reserve, it is undoubtedly necessary to implement the plan. However, at present, domestic cotton resources are abundant, and the market reform of cotton is deepening. Cotton enterprises It is not easy to purchase cotton stored in China.

In 2015, the time of national storage cotton rotation was ~8 months in July. In July 10th, the 2014/2015 cotton auction began. In nearly two months of auction, the enthusiasm of cotton companies involved in national cotton auction is generally not high. From the official launch of the national cotton store in July 10th to the end of August 31st, the total output of the total cotton reserves reached 63411.74 tons, of which the domestic cotton turnover was 53682.24 tons, and the import cotton turnover was 9729.5 tons. The cumulative turnover accounted for about 6.34% of the total output of the total output (1 million tons of planned output), and the result was not satisfactory.

　　 Reserve cotton The principle of "round out" is to "promote sustained and healthy development of industries, guide the market to operate smoothly, reduce financial burden, and improve the regulation mechanism of cotton reserves". This has changed with the previous policy of "stabilizing cotton production, forecasting the market of operators and cotton enterprises, protecting the interests of cotton farmers, and ensuring market supply". The state will lighten its financial burden and act as a principle to turn out cotton reserves.

In terms of reserve cotton production, relevant people said that there are two ways for the state to lighten its financial burden: first, high price rotation, narrowing the difference between the bid price and the round price, and the direct financial loss is low; two, the market price is lower than the market price, so as to reduce the stock of cotton and reduce the expenditure of state finance in the storage cost.