China'S Cotton Reserve Policy Is Steadily Progressing.

In recent days, the import and export of imported cotton yarn such as India, Pakistan and Vietnam has stabilized at a high price. There is little room for buyers to return the offer. OE yarn, C21S, C32S and JC21S, JC32S yarn are still the focus of attention and shipment. The C12S and C16S Pakistan Sao spinning bonded inventory is low, and some intermediate business quotes have risen 100-200 yuan / ton in CIF.

Traders analysis, short-term domestic cotton spot prices strong, throwing and trading volume and paction price "double high" and downstream orders gradually come to an end, imported cotton yarn must be sold at a tight schedule, as far as possible to reduce inventory and ease financial pressure.

With the development of China's cotton reserves, high quality cotton is given priority, and the demand for high-grade cotton has been met for a short time. The sale of cotton in bonded and forward shipment is not optimistic, and the situation in the external yarn market is equally deserving of attention.

It is understood that since the start of the national cotton auction in May 3rd, the turnover rate has reached more than 99% for two consecutive days, and all the imported cotton have been sold.

The high turnover rate is low in the stock of cotton textile mills and traders, the reasons for the risk of supply "break", and the factors of low bottom price of storage and storage, and the quality of cotton to meet the demand of textile mills.

Taking into account 1 grades of light yellow cotton dyeing, 2 grade yellow cotton dyed cotton and 1 grade yellow cotton dyed cotton are mainly used for spinning 40S and below cotton yarn. The cost of domestic mills is expected to decline again, and competitiveness will be further improved.

From foreign trade companies,

And cloth factory orders, the second half of 2016 sales orders are not optimistic, low and medium yarn consumption and demand do not rule out the "cliff" type of possibility of falling.

According to the survey, during the May 1st period, some weaving factories in Henan, Hebei, Jiangsu and Hubei had "unprecedented" holidays, and the resumption of work after the festival was not ideal. The factories and garment factories that started the operation also indicated that they were in a low profit or even no profit state because of the sharp rise in cotton prices, the sharp rise in dyeing and finishing fees and the large fluctuation of the RMB exchange rate. Under the premise of no hope of selling prices, they could only receive fewer orders or only "short, flat and fast" small bills.

From the end of April to the beginning of May, port's bonded imports of cotton yarn are still in a slow rising state, with OE10S-OE21S and C20-C32S yarn as the main components. Combed cotton yarn, compact spinning and high matching carding yarn haven't reached the port level.

It is estimated that by May 5th, the bonded volume will be about 8.0-8.2 million tons, and the Vietnamese yarn stock will soon catch up.

C21S-C40S and JC32 and JC32S are the main products. The competition with Pakistan is mainly C21S and C32S.

Mainly with the arrival of the peak season of textile and apparel in 3 and April, low price yarn and combed yarn were now "noisy" for a long time. Some traders and importers actively ordered yarn, Vietnamese yarn, Pakistan yarn, Indonesian yarn, Uzbekistan yarn and Turkmenistan gauze for 4/5 months.

Mumbai and other ports purchase spot, so although the sale of foreign yarn is relatively smooth recently, the stock is still increasing slightly.

At the same time, some Chinese manufacturers and middlemen consider the order and the yarn price (since mid April, India cotton yarn CIF quotas rose 0.06-0.08 USD / kg) to take the initiative to reduce the purchase of external yarn. In addition, it is estimated that the low cost and low color grade national cotton stores will significantly reduce the cost of the spinning mill, and the price of domestic cotton yarn and the following counts of cotton yarn will be reduced or bottomed down, and the factory will have a wait-and-see attitude and wait for a strong feeling of waiting for the C40S.

Some traders analyzed that in the first to two weeks after the rotation of cotton reserves, cotton producers and middlemen would be very active in bidding for national cotton stores. After all, only about 200000 tons of imported cotton with high cost performance could be auctioned for auction. But with the huge demand release, the orders in the downstream market did not improve. China's PMI, CPI and other economic data in April were weak, and the average daily turnover rate of national cotton stores would gradually decline, and the racket phenomenon increased.

It is understood that, in recent days, the ICE main contract has fallen from 64.75 cents / pound high to 62.15 cents / pound low, and the Cotlook A index has also been back to 70.80 cents / pound from last week's 71.60 cents / pound. The national reserve cotton wheel will come down next week or the oscillation price will be lowered. In the stage of internal and external demand entering the "closing stage", what is the driving force of cotton and cotton yarn rising under the "poor economic situation"?