China'S Next Step Will Be To Reduce Imports Of Cotton.

Here world

The small weave of the net tells you that China will reduce the import of cotton.

China, which is dealing with the country's excess reserves, will only allow the minimum cotton duty free import next year.

Cotton prices have been suppressed by a bumper harvest in the US, which will again increase the downward pressure on cotton prices.

China, which is dealing with the country's excess reserves, will only allow the minimum cotton duty free import next year.

Cotton prices have been suppressed by a bumper harvest in the US, which will again increase the downward pressure on cotton prices.

According to China's entry into the world

At the time of negotiations, China must allow domestic textile mills to import 894 thousand tons of cotton every year.

Liu Xiaonan, deputy director of the State Economic and Trade Commission of the national development and Reform Commission, said in 2015 that only the minimum quotas would be issued.

After buying cotton at a price higher than the market price for three consecutive years, China is puzzling over surplus cotton reserves.

Over the past two years, the total supply of cotton in the world has always been oversupplied.

From the inventory point of view, the end of the world cotton inventory for the first time exceeded 20 million tons mark, and China's final inventory accounted for more than half, up to 12 million 478 thousand tons.

The trend of global cotton stocks' centralization in China continued as a result of continued storage this year.

The government must gradually sell excess cotton, and at the same time, avoid a significant reduction in cotton prices so as not to stop farmers from completely planting cotton.

"The national cotton reserves are in excess.

This caused a lot of side effects, the effect is not good. "

Ma Wenfeng, Beijing orient agricultural consulting company, said.

Textile mills may still choose to import without quotas.

The premise is that the international cotton price is low enough, so that the quota free import can still be profitable after paying 40% of the tax.

The current international cotton price is the case, although the price of cotton in China fell to a low of four yuan per ton of 12960 yuan (equivalent to 96 cents per pound) yesterday.

The October cotton price of IC E was 65 cents per pound on Monday, and fell to a five year low in August.

Cotton prices have fallen by 27% this year.