A Cotton Yarn Strung Up The Whole "Cotton Cotton Textile" Industrial Chain.

The official website of the Zhengzhou Mercantile Exchange announced that cotton futures have been approved by the SFC and will soon be on sale.

The announcement made the industry of cotton and cotton yarn overjoyed.

So what impact will cotton yarn futures market bring to the yarn Market? What opportunities and challenges? Let's listen to the analysis of experts.

The upcoming cotton yarn trading varieties on the Zhengzhou Mercantile Exchange will play an important role in improving China's cotton and cotton yarn price system, connecting the upstream and downstream industry chain, and conducting healthy price information.

In July 18th, at the focus cotton yarn seminar of the future building in Zhengzhou, the famous cotton and cotton yarn futures expert, Dr. Ji Guang Po, said: "cotton futures have been ready for several years. This is a futures trading that almost all the participants agree on and should be launched as soon as possible.

The textile industry's attitude towards the cotton futures of Zheng Shang is: hope, worry and fear.

Whether upstream cotton enterprises, or downstream cotton yarn production enterprises and downstream weaving enterprises, are eagerly looking forward to the early opening of cotton yarn futures.

Cotton yarn futures can link the whole industry chain of "fiber to fabric" (fiber to fabric).

It can be said that a cotton yarn strung up the whole "cotton cotton textile" industrial chain.

From the following three aspects, we would like to talk about the topics related to cotton futures futures trading. (if we understand the mistake, we should take the rules promulgated by Zheng Shang as the criterion).

1) this is currently the only cotton yarn futures variety in the world, and it is a variety with distinctive Chinese characteristics. It is likely to become the weathervane of the world's textile industry.

2) expand the scope and connotation of the concept of cotton related enterprises.

3) the listing of cotton yarn futures is conducive to arranging production plans for cotton mills. The combination of off-season and peak season: cotton and cotton yarn products are linked together, just like the "two body passenger ships" in the sea can withstand greater storms.

It can not only smooth the fluctuation of upstream cotton futures prices, but also provide an authoritative and pparent cotton price reference for the purchase of raw materials for downstream cotton mills.

It is beneficial for enterprises to implement sunshine purchasing.

4) Zhengshang has repeatedly solicited the opinions of the enterprises in the industry and revised the contract rules many times, striving to start from the characteristics of the cotton spinning industry, and make a series of innovative practices of the factory warehouse delivery and the credit warehouse receipt, so as to help the entity enterprises get rid of the virtual reality and operate steadily.

5) pure cotton combed ring spinning 32 yarns as delivery varieties, the standard warehouse receipts can be circulated and pledged, and the remaining yarn count can also be delivered (carding, combing 40s, 50s). The non-standard warehouse receipt is pulled by self rising and discount. This approach covers almost a large part of the cotton spinning plant's capacity.

6) in addition to the warehouse delivery of large spinning factories that are eligible to apply for factory storage, the trading rules also allow third party producers or traders to participate in physical delivery of cotton yarns, which will attract the enthusiasm of SMEs and traders.

Two, the introduction of cotton futures varieties, the reaction of the market is more active, our findings have been drawn with several conclusions:

1) because of the opening of cotton yarn futures, there are already foreign businessmen who are interested in purchasing the spinning enterprises in the mainland.

More reasonable;

2) small and medium-sized spinning mills are keen to regard futures market as a sales channel instead of hedging risk measures. Small factories have a weak sense of risk and need to be guided.

According to our investigation, the small and medium sized cotton mills have the intention to deliver, but the downstream weaving mills are not willing to take delivery. We estimate that traders are the main traders in futures markets.

The direction of futures market development needs to focus on industrial priorities.

3) cotton yarn futures are factory library deliveries and credit warehouse receipts.

In this respect, the specialized subsidiaries of Futures Company need to be professionally operated.

5) we should pay special attention to the fact that goods that meet the delivery standards do not always meet the order requirements.

This is due to the characteristics of the order of textile enterprises (small batch, multiple varieties, personalization), and the weaving mill is used to buy with it, dare not hoard cotton yarn stock, and has high requirements for the consistency of cotton yarn quality.

The linkage between cotton and cotton yarn in large trading companies can solve this problem to a certain extent.

Three, cotton yarn futures can contribute to the realization of "cotton textile" supply chain management.

The core issue of the supply chain is the inventory problem. We must make good use of futures tools and tools, do a good job of raw material (cotton) virtual inventory management and finished product (cotton yarn) inventory management, in order to truly serve the good entity enterprises.

In this regard, the experience and successful mode of Shanghai's yarn and treasure company's construction at home and abroad can be used for reference.

In short, the futures of cotton yarn are in line with the expectations of all aspects of the industry chain. My own view is: better than nothing, early opening is better than late, constantly revised and upgraded.

The Zhengzhou Mercantile Exchange cotton futures futures trading is coming soon, which is beneficial to the healthy development of the industrial chain.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.