How To Digest Domestic Cotton Inventory Becomes A Real Problem

< p > < strong > domestic cotton prices remain stable < /strong > < /p >

< p > from the current < a href= "http://www.91se91.com/news/index_c.asp > > the cotton market < /a >, the domestic cotton price is far higher than the international market.

Since 2011, domestic cotton prices have always been higher than the international market. At present, the price per ton of cotton in China is still about 4000 yuan higher than that in the international market.

< /p >

< p > at present, the international cotton market is uncertain and the price fluctuates drastically.

In late May, the expected impact of the US quantitative easing policy was changing, and US cotton prices rebounded rapidly after a continuous decline.

In June 13th, the international cotton index (M) was 95.46 cents / pound, which rose 1.2 cents per pound, or 1.3%, up 16% from the previous year. According to the 1% tariff, the conversion rate was 15198 yuan / ton (the exchange rate was calculated at 6.1612), and the price per ton was less than 4083 yuan in the domestic market, and the difference in price per ton was narrowed by 606 yuan.

Although the price difference between the international market and domestic cotton has narrowed, the larger price difference still brings great pressure to the domestic cotton market.

< /p >

< p > under the guidance of the reserve cotton outbound policy, the domestic cotton price fluctuates around the temporary storage and storage price, which is generally stable.

In June 13th, the main contract settlement price of Zheng cotton futures was 20100 yuan / ton, which rose 140 yuan per ton, or 0.7%, down 0.1% compared with the same period last year. The national cotton price B index (representing the mainland's 328 cotton price) was 19281 yuan / ton, a decrease of 21 yuan per ton, or 0.1%, an increase of 4.2% over the same period.

< /p >

Since P > June, China's < a href= "http://www.91se91.com/news/" > cotton comprehensive price < /a > index and national grain purchase price index have declined, but the comprehensive cotton price index has dropped considerably.

In June 13th, China's cotton composite price index was 143.22, down 2.8% from last month, and the national grain purchase price index was 145.9, down 0.4% from last month.

China's cotton composite price index is 1.29 percentage points lower than that of the grain purchase price index, while last month, China's cotton composite price index was 2.56 percentage points higher than that of the original grain purchase price index.

< /p >

< p > < strong > cotton imports continued to decline < /strong > < /p >

< p > although the international cotton price is lower than the domestic "a href=" http://www.91se91.com "cotton price < /a >, but this year, cotton imports continue to fall.

This is because the state has increased the intensity of its reserves, implemented the auction of cotton reserves and the import quotas (3 tons per ton with 1 tons quotas) and increased the pport subsidy of cotton and cotton yarn. These measures inhibited cotton imports to a certain extent and maintained the stability of the domestic cotton market.

< /p >

< p > according to the General Administration of customs statistics, from September 2012 to May 2013, China imported 3 million 513 thousand tons of cotton, a decrease of 740 thousand tons compared with the same period last year, a decrease of 17.4%. In 2013 1 to May, China imported 2 million 142 thousand tons of cotton, down 437 thousand tons, or 17%.

< /p >

< p > from the market operation situation, state cotton is still the main channel of cotton supply.

According to the purchase and sale data of the national cotton market monitoring system, as of June 13, 2013, the cotton sales and processing in 2012 were basically over. The cotton sales rate of cotton processing and processing enterprises in 2012 was 98.6%, up 8.5 percentage points from the same period, which is 14.2 percentage points faster than that in the past 4 years.

< /p >

< p > < strong > cotton textile enterprises take the initiative to deal with < /strong > < /p >.

< p > although the domestic cotton supply is adequate, but the cost is affected, the enthusiasm of domestic cotton textile enterprises to purchase raw cotton has not been high.

The domestic cotton price is higher than the international market, which is a severe test for the downstream a target= "_blank" href= "http://www.91se91.com/" > cotton "/a" > a target= "_blank" href= "http://www.91se91.com/" > clothing "less than".

< /p >

< p > according to the General Administration of customs statistics, in May 2013, China's < a href= "http://www.91se91.com" > textile > /a > clothing exports increased slightly.

Textile and clothing exports amounted to US $22 billion 970 million, a year-on-year increase of 3.1%, an increase of 5.2% over the same period last year, and the growth rate dropped 2.1 percentage points over the same period last year.

The growth rate of textile and garment exports has declined, and in the short term, it is mainly domestic high cotton prices that have a negative impact on exports.

< /p >

< p > facing the relatively low international market and high domestic cotton prices, some domestic a href= "http://www.91se91.com" > cotton textile enterprises < /a > in order to adapt to the market, adjust the product structure, gradually reduce the amount of cotton, mainly produce high count yarn and functional fiber.

This is also an important reason for the rise of yarn production in China.

From 1 to May 2013, China's yarn production totaled 13 million 656 thousand tons, up 8.5% from the same period last year. From September 2012 to May 2013, China's yarn production totaled 26 million 155 thousand tons, an increase of 12.3% over the same period last year.

< /p >

< p > overall, the current situation of cotton market in China is basically stable, and the national cotton reserves have made a great contribution to the stability of the market.

This year, cotton still implements a temporary storage and storage policy. The storage time is from September 1, 2013 to March 31, 2014, and the price is 20400 yuan per ton.

The cotton purchase and storage policy has played a positive role in stabilizing cotton production and safeguarding the interests of farmers.

However, the high price of storing and storing cotton is not good news for downstream cotton textile enterprises.

What is more serious is that domestic cotton stocks are huge. How to digest these stocks is an important problem faced by national cotton reserves.

< /p >