Removing Inventory From Cotton Is The Main Keynote Of Macroeconomic Regulation And Control.

Affected by the current macroeconomic weakness, the supply of cotton exceeds demand in China.

According to the statistics of China Cotton Association, in early 2015, China's initial cotton inventory was 13 million 568 thousand tons, with output of 5 million 150 thousand tons, imports of 1 million 456 thousand tons, consumption of 6 million 700 thousand tons, and ending inventory of 13 million 474 thousand tons.

It is understood that due to the impact of many factors, cotton prices have been in a downward trend, cotton prices remain around 12000 yuan / ton.

"From the progress of cotton sales, the whole market is sluggish and the progress is very slow."

Wang Jianhong, deputy director of the cotton and hemp Bureau of the national supply and Marketing Cooperative Bureau and Secretary General of the China Cotton Association, said that because of the sluggish textile demand and the relatively large stock of cotton, plus the coming out of the national cotton store, cotton prices have been in a downward trend, and the sales of enterprises are very slow.

Especially in Xinjiang.

The sales progress is not very optimistic, and the inventory is relatively large.

Galaxy futures

General manager Zhang Hongzhou pointed out that at present, the quality of national cotton is better than that of new flowers in the light of this year's new flower quality. This year, most of the new flowers are 28mm, and the Treasury is mostly 29mm, so that the market's cotton will supply 32 textile factories below, which will play a role in activating the low-end spinning enterprises.

"I personally believe that the price of the spot will remain weak after the arrival of the cotton reserve, and will gradually meet the low end.

Demand for small scale textile mills. "

Zhang Hongzhou said.

For the national cotton mill, Wang Jianhong believes that at present, except for the new cotton market during the listing period, other countries have to arrange for the launch of the cotton store. The price will be linked through the spot price and the international price of domestic cotton.

Dai Gongxing, President of China Cotton Association, said that there is a clear gap between cotton quality and imported cotton at high prices on some key indicators, forcing some textile enterprises to choose high priced cotton imports abroad.

Good fiber can make good products. The United States cotton guarantee to provide high quality cotton to the industry.

US cotton is unable to control China's cotton policy, and how the future policy changes is unknown. But the US cotton depends on the global network and has a flexible supply chain system. No matter how the future changes, the US cotton exports will continue to improve.

At present, the stock of national cotton reserves is much higher than the normal and reasonable level. Going out of stock will become the main keynote of the national cotton macro-control in the next few years.

At the same time, the cost of cotton production in China is much higher than the international average level. By popularizing intensive, large-scale and mechanized production, efforts to reduce the cost of cotton production are the only way for the development of China's cotton industry.