The Imbalance Between Supply And Demand Has Led To A Rapid Rise In The Cotton Market This Year.

In 2015/2016, cotton production in China has seen a marked reduction. 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.

On the one hand, the planting area has fallen, on the other hand, the weather causes the decline in production per mu, and the decline may reach about 1 million tons.

In the past 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.

Above

People told reporters that at the beginning of this year, textile enterprises did not want to increase their inventories. "Because I heard that they had to store them, 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.

Keeping up is 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.

"I think it's a very good policy," he said. "It's just that there are some problems in this year's environment."

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.

Reporter statistics found that as of 22, July, all trading day turnover rate was 100%, the number of listed sales has been maintained at 30 thousand tons, but in July 22nd returned 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.