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    How To Expand Competitive Advantage In The Medium And High End Yarn Market Is The Future Direction.

    2016/11/3 20:58:00 45

    Medium And High End YarnsCompetitive AdvantageMarket Quotation

    China's cotton yarn imports jumped to the 2 million ton platform over the past 10 years, and the trend of growth is the inevitable result of the resultant force of various factors. The rapid expansion of the price difference between inside and outside cotton has only accelerated the process of growth. The import volume of cotton yarn has risen to 2 million tons.

    In the future, the trend of cotton price difference between inside and outside is narrowing.

    Cotton price

    The process of returning to marketization will continue, but there is little room for further decline of cotton yarn imports, which is mainly related to the adjustment of domestic industrial structure and the substitution of foreign yarn. The pfer of low-end industries is the direction of policy guidance, and is also the trend of the times.

    Before 2011, there was no obvious correlation between the import of domestic cotton yarn and the difference between domestic and foreign cotton prices. The import of cotton yarn showed a slow rising trend from 2005 to 2010, from about 800 thousand tons per year to 1 million 100 thousand tons, and 41% in five years.

    The correlation between cotton yarn imports and the difference between cotton prices and domestic and foreign cotton prices has been evident from 2011. With the reverse low position of -8000, the price of cotton yarn rebounded to the 4000-6000 yuan / ton interval after the beginning of the temporary storage and purchase policy. Cotton yarn imports also increased rapidly from a low of 55 thousand tons per month to a monthly high of about 180 thousand tons, and maintained for quite a long time.

    Until May 2014, the government explicitly adopted the target price subsidy policy instead of the temporary purchase and storage policy in the new year, and the difference in cotton prices between the inside and outside of the household formed a significant contraction trend, especially in the

    Reserve cotton

    Since the market price came out, the difference between cotton prices and domestic cotton prices in some stages has narrowed to 500 yuan / ton, and cotton yarn imports have dropped rapidly. The import volume in 2016 is expected to fall to 2 million tons for the first time in four years.

    In 2012-2015 years, domestic cotton yarn imports increased rapidly from 900 thousand tons to 2 million 350 thousand, and the middle and low count cotton yarn market was basically monopolized by imported yarn. India and Vietnam became the biggest winners.

    Among them,

    India

    The volume of imports increased from 137 thousand tons in 2011 to 700 thousand tons in 2015, which expanded from 15.7% to 30.05%. The import volume of Vietnam increased from 108 thousand and 500 tons in 2011 to 502 thousand and 900 tons in 2015, the proportion increased from 12.02% to 20.76%; the import volume of Pakistan increased from 296 thousand and 900 tons in 2011 to 541 thousand and 700 tons in 2015, but the proportion decreased from 32.87% to 32.87%.

    Imports of cotton yarn from India and Pakistan decreased rapidly. In 2016, the import of cotton yarn in India in 1-9 months was only 302 thousand and 400 tons, down 44.75% from the same period last year. It lost the top position in the past four years, and dropped to 20.84%. The loss of competitiveness of India's cotton yarn is closely related to the high cotton price in India for a long time. However, since the new year, cotton prices in India have dropped rapidly and cotton yarn competitiveness has gradually recovered. Pakistan's imports of cotton yarn are 285 thousand and 900 tons, down 33.35% from the same period.

    In stark contrast, Vietnam's cotton yarn has outgrown its total imports, reaching 456 thousand and 300 tonnes in the same period, an increase of 20.84% over the same period, accounting for 31.44%. It has become the largest source of China's cotton yarn imports for the first time.


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