Cotton City: There Is A Great Relationship Between Turnover Volume And Cotton Quality.

It is understood that in view of the huge stockpile of cotton reserves and market demand, it is very likely that the country will become normal in the future.

As a downstream cotton enterprise, we should carefully consider how to adapt to this situation as soon as possible.

It is a good opportunity to choose the right resources for the enterprises, control the production cost, and play a role of icing on the cake for the enterprise management.

As a government, in view of the low turnover of cotton reserves, we should seriously consider how to make a set of products in the shortest possible time before the quality of cotton reserves has changed significantly.

Healthy development is also an effective way to adjust cotton structure, inventory and reduce financial burden as soon as possible.

This not only tests the wisdom of the decision-making of the government departments, but also makes us look forward to the related policies of cotton reserves in 2015.

According to the paction data released by China cotton storage information center, cotton turnover reached 52694 tons in 2011, accounting for 15.97% of the total planned output of resources (15.97% tons of domestic cotton production plan in 2011), and cotton turnover reached 987 tons in 2012, accounting for 0.21% of the total output volume (2012 domestic cotton production plan 470 thousand tons).

In the first half of August, in the nationwide textile industry survey organized by the Central Cotton Information Center, it was learned that most textile enterprises believed that the quality of cotton in 2011 was relatively guaranteed and that they could be selected for auction. The quality of cotton from 2012 to 2013 was not ideal, unless the price had a larger decline, otherwise it would not take part in the auction.

This is the market, not the will of any person as a shift, only with supply and demand.

A well-known personage in the futures market also said that the results of the cotton reserve deal were disappointing. In fact, it was not much related to quality and price. The key point is that there are too many cotton resources now, and the enterprises have great choice. If the market does not have cotton, then the cotton with inferior quality will also be good.

In addition to the low quality and high price of the cotton, the low turnover volume has a certain relationship with the difficulty of textile enterprises in recent years, especially the cash flow of enterprises.

At present, domestic cotton is basically cash pactions, and downstream sales of yarn products have a certain account period, which has increased pressure on the cash flow of textile enterprises.

Most textile enterprises clearly stated that participating in the auction of cotton reserves should not only pay a certain margin, but also auction cotton weight at least more than 200 tons. Therefore, for most small and medium-sized enterprises, it is very difficult to produce such a cash, even if there is a fancy cotton, there is no money to participate in the auction.