Trend Analysis Of Domestic Cotton Market In 2016

Since January 2016, the downstream market situation of the domestic cotton textile industry chain is not good enough. Not only the orders for textile enterprises have been decreasing, but also affected by the factors of the Spring Festival holiday, the raw material procurement work basically stagnated.

At this time, upstream

Processing enterprises are deeply trapped in sales difficulties, and selling cotton is a common problem in the industry, especially in 2016.

Cotton companies are on pins and needles as expected.

Can domestic cotton market improve in 2016?

It can be seen that cotton prices continue to go down in 2011-2015, and it is expected that the price of cotton will not rise again in 2016.

Judging from the global supply and demand, according to the latest report of the International Cotton Advisory Committee (ICAC), the world cotton output in 2015 is estimated to be 22 million 890 thousand tons and consumption is 24 million 330 thousand tons, which is in a tight balance as a whole.

From domestic supply and demand data, domestic cotton end inventory will reach 13 million 50 thousand tons in 2015, and supply and demand will be seriously unbalanced.

Because of domestic cotton in 2016

The quota is still maintained at 894 thousand tons, so domestic cotton market is unlikely to be affected by foreign markets.

In addition, domestic downstream demand is shrinking.

China is the largest textile in the world.

China's export situation is also not optimistic. In 2015, the export volume of textile and clothing decreased year by year, which had to worry about its export situation in 2016.

In 2014, China's textile and clothing exports reached a historical peak and began to decline in 2015.

Affected by lower demand and weaker exports, domestic cotton imports in 2015 were almost cut.

According to China Customs data, 1 million 473 thousand tons of cotton were imported in 2015, a decrease of 970 thousand tons compared with that of the previous year, with a reduction of 39.8%, of which textile exports and clothing exports both declined.

In addition, cotton production in Vietnam, Bangladesh and Indonesia has been increasing in recent years, and has stimulated cotton imports. In 2015, Bangladesh is likely to overtake China as the largest cotton importer for the first time, while Vietnam will be the third largest cotton importer.

Cotton imports in India and Pakistan will also increase in 2015, which will undoubtedly cause great pressure on the domestic textile industry.

On the other hand, the domestic cotton market is facing great challenges in 2016. It is difficult to improve domestic cotton sales and low prices.