International Cotton Market: India Cotton Yarn Export Price Will Still Not Optimistic

According to the State Development and Reform Commission and the Ministry of Finance announced on 2016 ninth, according to the current situation of cotton supply and demand and market situation, it is determined that the new cotton market will not be arranged during this year (from the current to the end of February next year), and the 2017 reserve cotton sales will begin in March 6th, and the deadline is tentatively scheduled for the end of August, and the daily sale number is scheduled to be arranged at 30 thousand tons temporarily. If the market price of domestic and foreign market has obviously increased rapidly for a period of time, the turnover rate of the auction sale of reserve cotton will exceed three days or more than 70% days a week.

According to the news from India, the Pakistan government has announced that it will stop importing new customs from India cotton. The contracted shipments of cotton and issued permits are not subject to policy adjustments, but the rest will be limited. Within one or two days, Pakistan authorities will issue a statement to state the specific operation details and relevant laws and regulations. Some analysts said that if Pakistan's move is intended to boycott India cotton, India cotton exports will be dealt a heavy blow.

It is understood that last year began to benefit from quality and price advantages. Pakistan Textile enterprises purchase large quantities of India cotton to support their consumption increase, and Pakistan textile enterprises imported 425 thousand tons of India cotton in that year. The "ban" will undoubtedly bring about no small impact on the production and operation of Pakistan textile enterprises. Cotton growers in India have begun to accept non cash payment for the sale of new cotton. However, the impact of the new monetary policy on the textile industry is continuing, demand has dropped sharply, and the retail industry has basically stagnated due to lack of cash, which is expected to continue in the coming weeks.

Last week, the supply of India ginning plants increased, and cotton prices began to fall. The S-6 price dropped from 39700 rupees / Kandeh to 39400 rupees / Kandeh. Affected by the weakening demand of downstream textile enterprises, cotton prices in India are expected to decline further in the coming week. According to statistics, last week, the export price of C30S in India dropped 5 cents / kg to 2.95 US dollars / kg, the first time it fell below 3 US dollars / kg since July. Affected by the continued depreciation of the India rupee, the future India Cotton yarn Export prices will remain bad.

Cotton prices in Pakistan slightly stabilized, cotton yarn prices began to rise, demand for domestic cotton mills was active, combed yarn sales increased, and JC40S rose 1.57% in a week. At the same time, the profits of the cotton mill did not improve, and the yarn price increase did not keep up with the cotton price increase. On the export side, Pakistan yarn remained stable in the Far East, and the price of most varieties remained stable. RMB The sharp depreciation led to a rise in yarn prices in China. In recent weeks, demand for Pakistan's coarse yarn has resumed and export demand is likely to pick up. In the future, the price of polyester staple fiber in Pakistan will probably remain strong due to the rebound in crude oil prices and the increase in chemical fiber sales. At present, Pakistan's largest chemical fiber factory has a 67% boot rate and a daily output of 700 tons. Due to the low cotton output in China, the output of Pakistan chemical fiber will not decrease in the next few months.

The development and Reform Commission announced that the reserve cotton rotation arrangement decided that the new cotton market will not be arranged until the end of February this year (until the end of next year). In 2017, the sale of cotton reserves will start from March 6th, and the deadline will be tentatively scheduled for the end of August. The number of daily sales will be temporarily suspended by 30 thousand tons. If the market price of domestic and foreign market has obviously increased rapidly for a period of time, the turnover rate of the auction sale of reserve cotton will exceed three days or more than 70% days a week.