Domestic And Foreign Cotton Price Difference Widens The International Competitiveness Of Cotton Yarn

By the end of the round of cotton storage, the market was worried about the cotton supply in the future market and the overcapacity of the enterprises in the production of the cotton seed industry, which led to the high cotton prices in October.

Subsequently, the downstream cotton price conduction was blocked, the cotton appeared upside down and the market risk increased. After the market regulation, the two sides of the two sides were in a state of confrontation.

From the perspective of the downstream industry, the price of foreign cotton is blocked, the price difference between inside and outside cotton is widened, the international competitiveness of cotton yarn is weakened, and the downstream price pmission is not good.

However, with the consumption of cotton reserves in the spinning enterprises, the new cotton will become the only option to replenish the stock, and the new cotton with higher cost will also have to be purchased.

The cotton market is expected to recover slightly in the short term, and the downward pressure on cotton prices will gradually emerge as the competitiveness of domestic cotton yarn is weakened.

It is expected that the lint market will be stable and weak in November when the market is slightly warmer. The high point will appear in the first half of November, and the average monthly price will be around 15300 yuan / ton.

The lint market showed a slight decline after the rapid stretch at the beginning of the month and then stabilized. At present, the price of 3128B lint is 15354.71 yuan / ton, which is 3.29% higher than that of 14865.71 yuan / ton in October 1st. The highest price point appeared in October 11th, the price was about 15354.71 yuan / ton, the lowest point appeared in October 17th, the price was about 15268.57 yuan / ton.

Zheng cotton futures first opened up later this month after being opened high, and hit a monthly high of 15750 yuan / ton on 10 October, then dropped to a monthly low of 14730 yuan / ton. As of October 31st, the closing price of zhengmian main contract 1701 settled at 15225 yuan / ton, compared with the September 30th settlement price of 15100 yuan / ton, up 0.83%.

As of October 30, 2016, 2016

In, a total of 800 cotton processing enterprises in the country processed cotton according to the cotton quality inspection system reform plan and carried out notarization inspection. The inspection volume reached 5084488 packages and 1 million 151 thousand and 878 tons. Among them, 720 cotton processing enterprises in Xinjiang were notarized for inspection of 4997394 packages and 1 million 132 thousand and 285 tons.

Although the new cotton market was postponed at the end of the month due to the weather, the market was worried that the cotton supply to the national cotton store in October would be looted. However, due to limited reserves, the stock would still be reduced.

By the end of September, turnover of commodity cotton

304 thousand and 300 tons, a decrease of 7 thousand and 200 tons from the previous month, a decrease of 2.3%.

The total amount of Xinjiang cotton in the turnover of commodity cotton is 199 thousand and 600 tons, accounting for 65.57% of total inventory, 14.17% of imported cotton and 20.26% of real cotton.

In terms of imports, domestic cotton prices were relatively low at the beginning of 9, but with domestic cotton

Continuing to rise, the gap between domestic and foreign cotton prices has widened, and China's cotton imports have decreased slightly from last month, which has increased considerably over the previous year.

According to customs data, in September, China imported 60 thousand and 600 tons of cotton, a decrease of 8 thousand and 600 tons, a decrease of 12.44%, an increase of 9 thousand and 700 tons, an increase of 19.03% compared with the same period in 2016. In 2016, China's total import of cotton 654 thousand and 900 tons, a decrease of 504 thousand and 500 tons, or a decrease of 43.51%.

The downstream cotton yarn market is beginning to pick up, but the market is still not strong.

According to the price monitoring of business associations, by October 31st, the average price of 21S cotton yarn with high quality knitted fabrics was 22525 yuan / ton, rising by 1.52% yoy, up 7.62% over the same period last year.

The downstream cotton yarn market is in the peak season. Although some enterprises are supported by previous orders, production and marketing remain relatively stable, but the textile enterprises generally do not have enough confidence in the future market.

Most of the feedbacks in the weaving mills are not good, although the price changes little, but orders and sales are shrinking.

From the perspective of the textile industry, exports of textiles and clothing dropped sharply in September.

In September 2016, China's textile and clothing exports amounted to 22 billion 764 million US dollars, a decrease of 18.50% compared to the same period, a decrease of 15.41% over the same period last year.

The export of textiles was 7 billion 720 million US dollars, down 20.5% compared to the same period last year, which is 25 percentage points lower than that in August (10 billion 246 million US dollars, up 5.2% from last year). Clothing exports 15 billion 45 million US dollars, down 12.6% compared to the same period last year, which is 5 percentage points larger than that of August (17 billion 686 million US dollars, or 7.3% percentage points lower than the same month).

In addition, the commodity supply and demand index (BCI) of the business community in October was 0.57, an increase of 3.83%, reflecting the expansion of the manufacturing economy last month and the rising trend of the economy.