Domestic And Foreign Cotton Prices Oscillate Downward Adjustment

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Rounds of rumors intensified, domestic and foreign cotton prices oscillate down, constantly adjusted, ICE cotton fell two times 57 cents / pound, Zhengzhou futures market CF1609 contract price fell to 10100 yuan / ton, domestic and foreign cotton price difference has been shrinking and even gradually closer, at the same time, domestic cotton yarn market competitiveness is rising.

In recent years, due to the high price of cotton both inside and outside, foreign low count yarn has poured into our country, resulting in a lot of low and medium yarn enterprises crying hard.

Now, with the continuous adjustment of domestic cotton policy and the integration of domestic cotton prices and international cotton prices, the past 1 tons of domestic cotton prices over 1 tons of imported yarn prices have passed, and domestic fabric factories and garment factories and other imported cotton yarn demand and purchasing enthusiasm continues to drop.

At present, the trend of import yarn's decline is more obvious in our country.

According to Chinese customs statistics, 1~2 months in 2016, China imported 277 thousand tons of cotton yarn, a decrease of 18.9% compared with the same period last year.

The number of imported cotton yarn has dropped for the two month in a row. The import volume in January and February was 162 thousand tons and 116 thousand tons respectively. Compared with the same period in 2015, the number of imported cotton yarn decreased by 25.9% and 6.5% respectively.

The decline of import yarn's heat is influenced by the fluctuation of RMB exchange rate besides the adjustment of China's cotton reserve policy and the expected decline of domestic cotton prices.

Situation.

Import yarn converted into RMB price and domestic yarn

Closer to that, textile manufacturers said that if the price difference between domestic and foreign yarns was within 300 yuan per ton, they would prefer to buy domestic yarns.

China Cotton Textile Industry Association official said that in the future, as China's cotton price marketization reform process is accelerating, the cost of spinning cotton enterprises will gradually narrow down, and imports of cotton yarn will continue to decrease.

Especially for the 2016 reserve cotton rotation, the market generally believed that the quality of national cotton and cotton is not high, but it can meet the demand of low spinning yarn in domestic spinning enterprises. Therefore, with the large number of cotton reserves coming out and the limitation of cotton import quotas, the domestic low and medium yarn market will be revived, and the C32S or below low grade yarn will be subject to certain pressure.

So, after several years of imported yarn "invasion", can the domestic low spin yarn market be recaptured?

If there is no financial subsidy, what will happen to the competition between imported yarn and domestic yarn? Some analysts believe that if the market competition is fully realized, in the field of conventional varieties, it is possible that the domestic yarn should be given way to Southeast Asian countries. With the continuous improvement of China's textile technology, the pfer of some low-end textile production capacity to Southeast Asian countries is an inevitable trend.