In 2016, Domestic Cotton Prices Will Appear "Ice And Fire Two Days" Situation.

In 2016, the cotton industry in the cotton industry on the trend of cotton prices in 2016 is also more.

For the cotton market in 2016, they were very pessimistic when they exchanged with cotton enterprises.

The news of the rounds is endless.

What is the price of cotton in 2016? Let's take a look at cotton demand and supply.

Demand

What is the demand for spinning cotton in 2016?

The industry is in a period of rapid expansion, and the amount of cotton used per year is about 12 million tons.

But in recent years, the development of China's textile industry has entered a cooling period. The amount of spinning cotton has dropped to about 7 million tons per year, especially the substitution of chemical fiber and other fibers to cotton. The cotton spinning enterprises tend to produce blended yarn. It is estimated that China's spinning cotton will be around 6 million 500 thousand tons in 2016.

It is worth mentioning that in recent years, China's textile industry high count yarn production capacity has continued to expand, while the low and medium yarn production capacity is showing a rapid downward trend.

Mr. Liu, manager of a textile enterprise in Shandong, said that in 2015, the production capacity of 50-80 yarn in their factory increased by 20 thousand spindles, while 21S and 32S decreased by 20 thousand spindles simultaneously.

Some people in the industry estimate that from 2013 to the end of 2015, the national cotton yarn production capacity dropped by about 40%, but the output of 50 or more medium and high count yarn increased by about 20%.

High count yarn has strict requirements for raw cotton. Many enterprises only choose high-quality cotton, cotton and cotton in cotton.

Cotton.

Therefore, textile enterprises in 2016 increased demand for high quality cotton and reduced cotton for general quality.

Supply

According to the national cotton market monitoring system survey data, in 2015, the total output of cotton in China was 5 million 216 thousand tons, a decrease of 21.2% over the same period last year.

Of course, the supply of cotton plus about 10000000 tons of national cotton stocks.

In the near future, a hot topic in the market is when the national cotton reserves will go out.

In 2016, the policy background was "going out of stock, going to capacity, deleveraging". In 2016, the national cotton store came out of the game. The market is not expected to be too high, at least to maintain the current level of 12000-13000 yuan / ton, and even some enterprises believe that the price of the national cotton mill should be 10000 yuan / ton and below.

In addition, one problem may be overlooked, that is, in 2015, cotton production in the whole country not only decreased but also decreased in quality.

A Xinjiang textile enterprise official said that in 2015, the quality of Xinjiang cotton (including the mainland cotton) decreased mainly due to shorter fiber and thicker fiber and increased horse value. This is a common phenomenon.

In previous years, the quality of 3128B and above in Xinjiang and the mainland

Accounted for more than 85%, and less than 60% in 2015, almost no more than 3129, 2129, 1129 grade of high quality cotton.

Generally speaking, 3128 grade lint is suitable for spinning 32 or 40 regular yarn. If spinning more than 50 high count yarn, cotton with better quality is needed for cotton blending. It is also difficult to find cotton suitable for spinning high count yarn from national storage cotton.

Therefore, from the perspective of supply, China's high quality cotton is tight in 2016, while low quality cotton is oversupplied.

From this point of view, in 2016, domestic cotton prices will appear "ice and fire two days" situation, high and low quality cotton price difference may continue to widen.