The State Put In Reserve Cotton, Resulting In Some Difficulties In The Use Of Cotton.

The global spot price of cotton is rising. Ren Liang, an investment adviser to Huarong securities, believes that first of all, the reason for the weather is that the larger cotton producing countries in the world are cutting production, and the planting area of cotton in China and the United States is decreasing year by year. Apart from this great environmental factor, we found that this year's cotton prices began to rise before the rise of cotton reserves and entered a period of rapid rise after the launch of cotton reserves.

It also investigates the causes of this strange phenomenon from many textile enterprises and insiders. After the beginning of the year of silence, from the beginning of April, Zheng cotton Prices began to rise rapidly, breaking through the expected price. As of July 22nd, the closing price of 1701 cotton futures contracts reached 15195 yuan / ton, up more than 50% from 10030 yuan / ton in April 1st.

"Now there are some difficulties in using cotton in our enterprises." The difficulty raised by insiders of a textile company in Hubei is that in spite of the surge in cotton prices this year, there are actually more difficulties for cotton producers to use cotton. A few days ago, nearly 150 cotton textile enterprises in Hubei, Shandong, Hebei, Zhejiang, Jiangsu, Guangdong and other places were in various ways. China Cotton Textile Industry Association The Cotton Textile Association (hereinafter referred to as the Cotton Textile Association) reflects the problems existing in the storage of cotton.

In April this year, the national development and Reform Commission and the Ministry of Finance issued a notice, and decided to gradually digest the state reserve cotton inventory from this year. In the previous 2015/2016 years, China's cotton production and production demand is increasing. A cotton textile industry spokesman who did not want to be named said, "because we heard that we need to store it," textile enterprises are reluctant to increase their inventories at the beginning of this year. But so far, cotton prices have risen rapidly for a variety of reasons. "The market has created a new imbalance between supply and demand."

At the same time, the national reserve cotton sales base price is also rising, according to China Reserve cotton According to the announcement data of the management company, from 25 to 29 days (thirteenth weeks) in July, the standard sale price of the reserve cotton was 14376 yuan / ton, up 767 yuan / ton compared with last week's base price of 13609 yuan / ton, while the sales base price of 12021 yuan / ton increased by nearly 20% compared with the first week of the reserve cotton. "Such a fast speed up, enterprises must be unable to bear." A textile industry insider who did not want to be named was introduced.

Cotton prices are rising, but prices can not be spanmitted to the downstream. Textile enterprises can not digest the high cost of raw materials. The above textile industry personage said, because export is in a negative growth state, domestic sales are also slowing down, and terminal demand is not strong, so cotton prices can not be spanmitted, cotton textile enterprises can not digest such a high cost of raw materials.

From the investigation and research situation of China Cotton Textile Industry Association, the situation of cotton textile enterprises has become more and more serious since May, and production has been declining. If the price of cotton price rises, if the cotton price can be carried on, cotton textile enterprises can earn money, but at the moment, it is more difficult to raise prices downstream. Now the downstream is in the off-season, so there is not much demand for cotton market.