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    The Development And Reform Commission Released 2016 Cotton Rotation Arrangement In May To Digest In An Orderly Way.

    2016/4/19 9:41:00 58

    Reserve Cotton RoundsAnnouncementsImportsStockpilesCotton ReservesTextile EnterprisesImported YarnCotton

    In April 15th, the national development and Reform Commission announced the announcement of the reserve cotton rotation.

    2016 reserve cotton rotation

    It will start in May, and pricing will take the form of "asymmetric rotation, first round and backward entry, multiple rounds and fewer rounds". The prices, quality and weight of cotton reserves concerned by textile enterprises will become clearer.

    The quality of the reserve cotton from this round is increased, and the procurement is more advanced for enterprises.

    Spinning 32 or less yarn is not a big problem. Part of the reserve cotton can be spun into 40 yarns, so the spinning of the medium and low count yarn is the biggest beneficiary.

    For enterprises producing high count yarns, the willingness to purchase cotton reserves is low, but the price of reserve cotton reduces the spot market price and the procurement cost of textile enterprises is reduced.

    Taking into account the current spot market situation, this reserve cotton priority gives priority to the export of cotton and textile enterprises in urgent need of high-quality cotton.

    Imported

    Reserve cotton has a high degree of attention. Besides quality, it is more important to settle the net weight of imported cotton reserves.

    Can the reserve cotton rotation reach the state?

    Destocking

    The win-win situation of small and medium-sized textile enterprises depends on textile demand.

    In March, small and medium-sized textile enterprises, due to various costs, funds and sales, had limited production and shutdowns, especially those producing 32 yarns.

    In large textile enterprises, the enterprises that produce high count yarn and blended yarn have better profits, and pure cotton yarn is hard to say.

    After the official launch of the reserve cotton, some of the small and medium textile enterprises are going back to work. Considering the factors of labor, hydropower and imported yarn prices, the enterprises will wait and see the paction price of the reserve cotton and choose the right time to resume work.

    Downstream clothing and clothing, since the beginning of March, sticky short, polyester short cumulative increase of about 500 yuan / ton, and cotton yarn prices fell slowly, some clothing enterprises in the procurement of fabrics has placed their eyes on all cotton grey cloth, procurement volume also has an increasing trend.

    In addition, garment enterprises also admit that the colorful and functional chemical fibers on the market have been accepted by consumers. It is rather difficult for cotton products to return to the position of "boss".

    The following is the announcement issued by the national development and Reform Commission.

    People's Republic of China national development and Reform Commission

    Ministry of finance of People's Republic of China

    Notice

    Ninth 2016

    With the approval of the State Council, the State Development and Reform Commission and the Ministry of Finance decided to gradually digest the stock of the national reserve cotton from this year and adjust the reserve to a reasonable level.

    The relevant matters are hereby announced as follows:

    1. General idea of cotton storage digestion

    The digestion of national cotton reserves is carried out in accordance with the "asymmetric rotation, the first round and the rear wheels, and multiple rounds of rounds and rounds". The following four principles are followed:

    First, it is conducive to the sustained and healthy development of the industry.

    We should give overall consideration to the development of domestic cotton planting and textile industry, deal with the relationship between stabilizing cotton production and digestion cotton reserves, expanding the demand for textile cotton and promoting industrial pformation and upgrading, so as to promote the coordinated development of cotton production, circulation and processing.

    Two is conducive to guiding the smooth operation of the market.

    The digestibility of reserve cotton should follow the law of the market, and the wheel will keep normalization and mechanism, and the wheel will go along with the market, stabilize the market expectation and facilitate the enterprise to plan the production and operation in advance.

    Three, it is conducive to reducing the financial burden.

    As many rounds as possible, we should do a good job in the digestion of stored cotton, improve the operation mode, improve work efficiency, and reduce financial expenditure as far as possible.

    Four, it is conducive to improving the cotton reserve regulation mechanism.

    We should sum up experience in time, improve and perfect the dynamic and standardized mechanism for the storage and rotation of cotton wheels, standardize the management of reserves, and continuously improve the efficiency of reserve control.

    Two. Arrangements for the delivery of cotton reserves.

    (1) the way out.

    In principle, the reserve cotton rotation will be sold through the national cotton trading market in the form of open bidding. If necessary, the country will increase other designated trading platforms to carry out the cotton trade.

    (two) turn out time.

    In principle, every year from March to August, the national statutory working day will arrange for the sale of reserve cotton for sale.

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

    (three) number of rounds.

    Under normal circumstances, the daily sale of cotton reserves does not exceed 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.

    (four) round out price.

    The reserve price of cotton reserves is determined according to market dynamics. 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 cotton spot price index in the international market are determined by 50% weight, adjusted once a week (the specific formula is attached).

    (five) notarization inspection.

    The reserve cotton for rotation is organized by the China Fiber Inspection Bureau to conduct a comprehensive notarization of quality and weight.

    Three. Arrangements for storing cotton wheels.

    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 turn in time was concentrated on the new cotton market (from September to February of next year).

    According to the actual situation of cotton reserves in the previous year and the supply and demand situation of cotton market in the year, the number of round trips will not exceed 30% of the actual output 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.

    Turn in the price, follow the market.

    The specific arrangements will be announced later.

    Four. Arrangements for the rotation of cotton reserves in 2015/2016

    In order to allow some space for the sale of cotton in the market, and to achieve a smooth and orderly pition to the new mechanism, we should follow the relevant arrangements mentioned above, and make the following detailed provisions on the number of rounds and the number of rounds coming out in 2015/2016.

    (1) the rotation began in May.

    The specific rotation time is the national statutory working day of August 31st May 3, 2016 -2016.

    (two) gross output does not exceed 2 million tons.

    In principle, the number of daily sales is not more than 30 thousand tons, giving priority to arranging imported cotton wheels.

    Five. Other provisions

    (1) in order to do a good job in the storage of cotton, the China cotton reserve management corporation, the national cotton trading market and the China Fiber Inspection Bureau will formulate relevant implementation rules for storing cotton out of stock, bidding for pactions, and notarization inspection, etc., and announce them through their respective official website and the national cotton trading market website (www.cnce.com).

    (two) in the process of cotton storage digestion, if the domestic and foreign cotton market has undergone significant changes, the national development and Reform Commission and the Ministry of finance will make appropriate adjustments and improvements to the cotton related digestion arrangements according to the spirit of the State Council, and will be announced later.

    Notice hereby.

    Annex: formula for calculating reserve price of national cotton reserves

    National Development and Reform Commission

    Treasury Department

    April 15, 2016

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