Cotton Wool Digestion Announcement Issued Jointly By The National Development And Reform Commission And The Ministry Of Finance

Recently, affected by speculation and other factors, the domestic cotton futures prices fluctuated unexpectedly, and spot prices also followed the rise, resulting in nervousness in the market.

On the afternoon of April 20th, the economic and Trade Department of the national development and Reform Commission convened a meeting of China Cotton Association, China Cotton Textile Industry Association, Zhengzhou cotton exchange and the national cotton trading market to study related issues.

The relevant departments said that the current excessive speculation behavior is unfavorable to the stability of the cotton market, and also deviates from the original intention of the national macroeconomic regulation and control policy. Our country has sufficient inventory, which can completely guarantee the production demand of textile enterprises and take other measures when necessary.

Jointly issued by the NDRC and the Ministry of Finance in April 15th.

The digestion Department announced the relevant departments in detail:

The first is about the total quantity and the number of daily listing.

The total annual output of 2015/16 does not exceed 2 million tons. In principle, the daily sales volume of not more than 30 thousand tons is determined by considering the supply and demand situation of the domestic market this year. Once the market demand is increased, the total amount of cotton reserves can be increased at any time. At the same time, according to the announcement principle, if the market price of domestic and foreign markets rises obviously in a period of time, the sale rate of the cotton reserve auction will exceed three days a week, and more than 70% days will be increased, and the sales volume will be increased appropriately.

The two is about the delivery structure.

The priority arrangement for imported cotton production in 2015/16 is mainly due to the urgent needs of textile enterprises for high quality imported cotton.

Diversified demand, domestic cotton delivery will also be carried out at the same time.

The three is about inspection and export.

The notice pointed out that the reserve cotton was organized by the Bureau of MFA to conduct a comprehensive notarization of quality and weight.

The preparatory work of the central storage cotton company and the Sinopec Bureau has already started in advance, and is now in an orderly manner, which can fully meet the daily sales progress. Meanwhile, it has urged relevant units to ensure the speed of delivery.

The company clearly stated in April 20th that it had issued a 2 million ton outbound plan, and the MFA has been fully deployed for public inspection to ensure the timely sale.

China Cotton Association reminds cotton enterprises that the goal of "promoting sustained and healthy development of industry and guiding the smooth operation of the market" is consistent. We should pay close attention to policy developments and analyze the supply and demand situation calmly.

In recent years, the market downturn, the operation of the industry chain is difficult, enterprises should grasp their production and operation rhythm, do not follow the trend of speculation, avoid greater harm.