State Owned Cotton Obviously Gave The Textile Enterprises A "Reassurance".

The upside down price of lint and seed cotton makes the cotton enterprises that rush to buy high price seed cotton suffer much.

According to the current market price, cotton enterprises are faced with the problem of paying more and more money. If they wait and see, they will also have to bear the cost of storage and loan interest of lint.

Although 2016/17 cotton seed cotton purchase is coming to an end,

Prices fell slightly, but because cotton prices in the early months of seed cotton listed on the high price of about 7 cotton, so the average price is still higher than in previous years, lint and seed cotton prices hang upside down.

Some experts have questioned that the latest report on world cotton output predicts that this year will increase by 6.5% over the previous year. The price of seed cotton in China is high, and the downstream fundamentals do not support it. Who is the initiator of such a high cotton price?

In 2015/16, a total of 2 million 659 thousand and 200 tons of state-owned cotton storage outlets were issued, with an average price of 13324 yuan / ton, and the time of rotation was up to the end of September.

Such a large volume shows that cotton textile enterprises "have cotton in their hands and do not panic in their hearts".

According to the announcement of the national development and Reform Commission and the Ministry of Finance on the dumping and storage of national cotton reserves, a new round of dumping will be launched in 3-8 2017. Under normal circumstances, the number of sales of reserve cotton on each working day will not exceed 50 thousand tons.

Roughly calculated, the total amount of dumping and storage in 2017 is about 6 million 600 thousand tons.

2016/17 cotton year, domestic cotton output is estimated to be 4 million 572 thousand tons.

At present, China's textile and garment enterprises consume about 7 million tons of cotton per year.

China's textile and garment industry is still stagnant.

Demand is not strong.

According to customs statistics, China's textile and apparel exports in September were about 22 billion 764 million US dollars, down 15.41% from the same period last year, the decrease was 12.3 percentage points higher than last month, and the reduction was 18.50%.

In the first 3 quarters, China's total exports of textiles and clothing were US $201 billion 101 million, a year-on-year decrease of 4.87%, and the overall export situation was not optimistic.

According to the data of the China National Business Information Center, the sales volume of clothing in 50 major large retail enterprises in the first 3 quarters of 2016 decreased by 1.4% compared with the same period last year, an increase of 2.3 percentage points lower than that of the same period last year.

In addition, due to the long term imports of cotton and cotton

Upside down, large textile enterprises are more willing to purchase imported cotton.

Reporters learned from Jinshi futures that the price difference between domestic standard cotton and India cotton S-6 is 2760 yuan / ton, which is obviously higher than the level of nearly 2000 yuan / ton in the first half of 2015.

And this year the United States cotton harvest, is expected to increase about 20%, is bound to impact the national cotton market, and increase the wait-and-see mood of some textile enterprises.

In an interview with reporters, a small and medium-sized garment factory specializing in foreign trade in Kunshan said that there was no order in the first half of the year. It was hard for them to last until Christmas and new year's day, but the peak season was not prosperous, orders were limited, and overseas customers kept the price down very low.

In order to reduce the cost, the factory changed the pattern of purchasing the finished goods directly, instead of purchasing cotton yarn directly from the cotton mill, and commissioned the weaving plant to produce the most reasonable purchasing objects in Shandong, Sichuan, Jiangxi and Zhejiang provinces.

Who is hyping the Xinjiang cotton?