Multiple Factors Will Increase Domestic Cotton Industry

Multiple factors will increase domestic cotton industry

"Imported cotton is imported from the latest data of cotton and cotton yarn imports, prices and so on.

The price advantage has been lost.

Among them, the number of imported yarns has declined significantly, and the cost performance of domestic cotton and domestic yarns has been further improved, and the market share is expected to further expand.

Wu Jian, a cotton trader in Hengshui, Hebei, told the futures Daily reporter that compared with the same period last year, the daily life of the mainland textile enterprises such as Hebei and Shandong was stronger than ever, and the survival environment of the domestic cotton industry has been greatly improved.

According to the reporter, from 1 to May this year, China imported 803 thousand and 600 tons of cotton yarn, a decrease of 18.87% compared with the same period last year.

According to the relevant market institutions, the total import volume of cotton yarn in China will drop to less than 2 million tons this year, and the cotton consumption will be 1 million 860 thousand tons.

The situation will gradually change.

Wu Jian believes that the price advantage of domestic cotton and domestic yarn is improved, and the increase of market share is mainly due to the implementation of the cotton target price policy, and the price setting of the national cotton sale this year is close to the market reality.

In addition, the quickening of the domestic cotton industry's product structure adjustment and rapid upgrading of technological pformation will also help increase domestic cotton product demand.

Up to now, China has implemented the cotton target price policy in Xinjiang for several years. From the implementation effect, domestic cotton planting is further concentrating on suitable planting areas. The scale of cotton planting, mechanization, improved varieties and high quality have been continuously improved. The goal of policy making for cotton and its products in the country has been initially achieved, and the price of domestic cotton and domestic yarn has achieved the goal of pricing in the market.

According to the reporter, because the price of domestic cotton and domestic yarn is basically formed by market mechanism, it can better reflect the market supply and demand.

Enterprises arrange production according to market changes.

More importantly, because the price of domestic cotton and domestic yarn has been integrated with imported cotton and imported yarns, the quality is also improving, and the determination of the selling price of national cotton and cotton is adjusted flexibly with the market. This makes the price difference between cotton and cotton yarn shrinking inside and outside. Many textile enterprises and cotton yarn demand enterprises are more willing to choose domestic cotton and domestic yarn when purchasing raw materials from the angle of cost performance.

In addition, the decrease in the number of imported cotton yarn will also direct domestic cotton and domestic yarn consumption to warm.

Reporters and some cotton traders, textile enterprise procurement personnel exchanges understand that the current domestic cotton industry development is entering a benign track, from cotton cultivation, seed cotton acquisition and processing, to the final lint sales, cotton yarn and its downstream products consumption are more unimpeded.

At present, the domestic cotton market has gone smoothly, and the demand for downstream industries such as textiles has kept improving. The market expects that the domestic cotton industry will continue to recover.

However, Lu Zheng futures cotton analysis teacher ZTE believes that because of the decline in cotton planting area this year and the weather changing in some areas, the domestic cotton supply gap in the new year is estimated to be larger, which requires imported cotton.

To make up for it, and in the case of growing market demand, domestic cotton and cotton yarn prices are expected to continue to rise. If downstream industries can not digest the pressure of rising prices of raw materials, they will eventually have an adverse impact on domestic cotton industry.