State Cotton Stores Began Selling Cotton Prices And Were Not "Smashed Into Big Holes".

The national development and Reform Commission and the Ministry of Finance jointly issued a notice on the rotation of national cotton reserves, and the long-awaited selling policy of national cotton reserves finally came to "boots".

According to the announcement, the general idea of the State Cotton Storage digestion is to operate according to the way of "asymmetric rotation, first round and rear wheel entry, multiple rounds of production and fewer rounds".

In terms of rotation time, in principle, every year from March to August, the national statutory working day is arranged for the sale of reserve cotton.

From September to February, new cotton will be suspended during the listing period.

Under normal circumstances, the number of daily reserve cotton sales is no more than 50 thousand tons, and the specific number of rounds is based on actual pactions.

If the market price of domestic and foreign market has obviously increased rapidly for a period of time, the turnover rate of the auction sale of reserve cotton will exceed three days or more than 70% days a week, and the number of sales will be increased appropriately.

Cotton with long storage time is preferred.

The sale of State Cotton stores will naturally increase the supply of the market, which is bad news for cotton prices. But after the announcement of the policy, cotton prices have not been "hit the big hole".

During the trading session on Friday night, Zheng cotton price rose like rainbow, the main 1609 contract closed up 350 yuan / ton, or 3.09%, and the strong market pattern remained.

In view of this, relative to imported yarn, the current domestic yarn has strong competitive advantages, and the market is more optimistic about the recovery of low and medium end capacity.

In addition, the negative impact of dumping on the market has been digested in the early decline of cotton prices.

Therefore, the policy of dumping and storage does not suppress the formation of cotton prices again. In the future, cotton prices will continue to rise in the case of state cotton storage.

In addition,

The selling base price is determined dynamically according to the market. In principle, the selling price is linked to the spot price of cotton at home and abroad. The cotton spot price index in the domestic market and the spot price index in the international market are calculated according to the weight of 50% and adjusted once a week.

The announcement also made specific arrangements for the entry of national cotton stores.

In order to optimize the quality structure of reserve cotton, a small amount of cotton was pferred into high quality cotton after the storage of cotton.

The rotation time was concentrated in the new cotton listing period (from September to February of next year).

The number of round trips is mainly determined by the actual output of cotton reserves in the previous year and the supply and demand of cotton market in the year, and in principle, it does not exceed 30% of the actual number of actual rounds in the previous year.

If the market is tight after the listing of new cotton, there will be no arrangement for the storage of cotton.

The price of rotation is on the market.

2015/2016 year

In terms of rotation, the first is the launch from May of this year. The specific rotation time is the national statutory working day from May 3rd to August 31st this year. The two is that the total output is not more than 2 million tons. In principle, the daily sales volume does not exceed 30 thousand tons, giving priority to arranging imported cotton wheels.

Because the sale of state-owned cotton stores is adjusted according to the volume of listing, which means that

It will be more comfortable. Later, it mainly depends on the market's acceptance of cotton reserves.

According to the current market consumption situation, it is estimated that in addition to some cotton with better quality indicators, the competition of other national cotton stores will not be too intense at auction, and the actual paction price will be limited.

Unless the domestic production of conventional yarn spinning enterprises recoveries a lot, the start-up rate will increase and thus bring about substantial growth in raw material demand, but this needs a process.

At present, the domestic cotton business inventory is around 1 million 500 thousand tons, of which about 700 thousand tons are in the hands of the Xinjiang Corps. Before the sale of national cotton and cotton, there are about 800 thousand tons of cotton in the domestic cotton market, and there will be no supply shortage in the market.

Taking into account the increase in purchasing prices of textile enterprises after the rise in cotton prices, the market bullish atmosphere is relatively strong. In addition, the cotton throwing cotton first is a better quality imported cotton. It is estimated that the textile enterprises will have a strong desire to receive goods at the beginning of the throwing and storage, and the auction price may be high.