Cotton Prices Soar, Textile Enterprises Shoulder Pressure Alone

According to reports, the Zhengzhou cotton 1701 contract on the futures market has risen more than 60% this year.

Spot prices are rising.

Investment adviser Ren Liang believes that, first of all, due to weather reasons, 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.

Reporters also conducted investigations on this from a number of

The cause of this strange phenomenon is understood by enterprises and insiders.

"Now there are some difficulties in using cotton in our enterprises."

Hubei textile company insider told reporters this difficulty, in this year's cotton prices rose in the environment, in fact, more textile enterprises have difficulties in using cotton.

A few days ago, nearly 150 cotton textile enterprises in Hubei, Shandong, Hebei, Zhejiang, Jiangsu, Guangdong and other places reflected the existing problems of cotton reserves in various ways to the China Cotton Textile Industry Association (hereinafter referred to as the Cotton Textile Association).

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 asked not to be named, told reporters, "because we heard that we need to store it", textile enterprises are reluctant to increase their inventory 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."

Cotton prices soar, textile enterprises shoulder pressure alone

At the beginning of April, the price of Zheng cotton began to rise rapidly, breaking through the expected price of people.

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.

At the same time,

The selling base price is also rising. According to the announcement data of China's cotton reserve management company, in July 25 to 29 days (thirteenth weeks), the reserve price of the reserve cotton rank was 14376 yuan / ton, up 767 yuan / ton compared with last week's sales base price 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 declined to be named, told reporters.

Cotton prices are rising, but prices can not be pmitted to the downstream. Textile enterprises can not digest the high cost of raw materials.

The above textile industry sources told reporters that because export is in a negative growth state, domestic sales are slowing down, and terminal demand is not strong, so cotton prices can not be pmitted, and 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.

Sun Kuanghua, a business analyst, also pointed out to reporters that if the price of cotton price rises can be carried out, cotton textile enterprises will be able to 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 the cotton market. "

A good government is a bit untimely.

The imbalance between supply and demand has led to a rapid rise in the cotton market this year.

Huang Shanghai, a researcher at the Yangtze futures agricultural product, told reporters that in 2015/2016, cotton production in the country had been significantly reduced. "On the one hand, the planting area has been reduced. On the other hand, the weather has caused the production decline per mu, and the drop may reach 1 million tons."

At the same time, he said that in recent one or two years, domestic cotton prices have dropped, and they have gradually been in line with foreign cotton prices. The competitiveness of domestic textile enterprises has been improved, and the demand for cotton has also been increased.

The textile industry has told reporters that textile enterprises are reluctant to increase their inventories at the beginning of this year. "Because they heard that they had to store their stocks, the price of storage was relatively low at the beginning."

"This year, the state has restricted imports, and it is supposed to make up for the market demand by throwing and storing up. But it was postponed to May in March because of various reasons. These two months have exhausted cotton in the spot market."

Huang Shanghai told reporters.

And so on, put the cotton reserve on sale, but met the new rules of public inspection.

According to the announcement issued by the national development and Reform Commission and the Ministry of Finance in April this year, the cotton reserve issued by the China Fiber Inspection Bureau organized a comprehensive notarization test on quality and weight. "The proportion of public inspection has increased from 30% to 100%, and the volume of public inspection has not been up."

Huang Shanghai said.

Public inspection is not a key reason for less cotton reserves.

"Comprehensive public inspection is aimed at improving the quality of national cotton reserves.

Textile enterprises are worried about the quality of national cotton reserves, and China Cotton store has made an improvement in the test to give the textile enterprises a reassurance.

Huang Shanghai said, "I think this is a very good policy, but I just said there are some problems in this year's environment."

In addition, the enthusiasm of traders to participate in the national cotton auction is very high this year, and also helped to raise cotton prices. Data show that the cotton produced by traders has accounted for more than 35% of cotton.

Textile enterprises look forward to the national cotton storage extension, increment

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. Under normal circumstances, the number of daily reserve cotton sales is not more than 50 thousand tons.

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.

In addition, it is stipulated that the reserve cotton rotation will continue from May 3rd to August 31st. In principle, the number of daily sales will not exceed 30 thousand tons, and the total output will not exceed 2 million tons.

{page_break}

Statistics found that by the end of 22, all trading days in July were 100%, although the number of listed sales has been maintained at 30 thousand tons, but in July 22nd, it was back to 25 thousand tons.

In fact, since May 3rd, the volume of cotton reserves has been increased by more than 70% every day, but the state has not increased its output accordingly.

Huang Shanghai believes that "throwing reserves from 30 thousand tons to 50 thousand tons, due to the fact that the speed of public inspection can not keep up, there is a real bottleneck.

The established policy is now at the end of August, but can be thrown in September and October. As long as the market is in short supply, it can be thrown away. I think this policy can be achieved, and there is no difficulty in terms of execution.

Textile enterprises collectively put forward suggestions that under the condition of less than 50 thousand tons of daily delivery, the amount of input can be increased through other schemes. For example, "cotton and untested cotton are put in at the same time, and auction separately" and "2011 batches of cotton in Xinjiang in the year of 2011 and 2012 in batches should be carried out by random sampling."

In addition, some textile enterprises suggest continuing to put in reserve cotton in September and October.

And for traders' hoarding behavior, enterprises also hope to have targeted measures.

Huang Shanghai said in this analysis, "traders hoarding cotton may wait until September and October to sell again. If the stock is not listed, if the new cotton is not listed, the market will be out of date. At that time, the price may be higher."