India Cotton Yarn Prices Will Continue To Strengthen.

A well-known cotton yarn exporter in India recently said that in the four quarter of 2016, India's cotton yarn exports had stopped declining after several months of downturn, and the market demand returned to normal level. Driven by domestic factory production and export increase, the price of India cotton yarn is strong in late October. If not monetary policy disrupted the market order, India cotton yarn prices will continue to strengthen.

For the next stage of market orientation, the following points deserve market attention:

1. Under the influence of monetary policy, India Clothing consumption has dropped by 50%, but now it has recovered to 80%. It will be normal in the coming month.

2. In 2016/17, the area of cotton planting in India has been reduced by 12%. If the yield per unit area is raised, the output is expected to remain unchanged in the previous year, and is still at a historical low. Due to low inventory at the beginning of this year, India cotton Prices are expected to rise by about 20% over the same period.

3, the cotton yarn inventory in circulation channels is at a historical low level, which is usually the biggest factor of price rise.

4, at present, all India cotton buyers require immediate shipment because they have no stock.

5, due to operating losses, factories in India and Pakistan. Boot rate Both are low and the supply of the market is decreasing.

6, the factory's huge losses indicate that the reason for raising prices or reducing production is very sufficient, and there will be no reduction in sales at all.

At present, India's domestic retail business has recovered to 80% before monetary policy, and will slowly recover in the coming month. It is understood that some informal clothing companies are still adapting to the new policy, resulting in slow production and tight yarn procurement.

In recent days, garment factories have begun to increase production to meet the market demand after the new year, and the price of cotton yarn has begun to strengthen. Nevertheless, the price range of cotton yarn will not be expected to be 2-3%, because once demand exceeds that level, export demand will be reduced.

Related links:

The recent central economic work conference stressed that further efforts should be made to increase production capacity, strictly enforce relevant laws, regulations and standards such as environmental protection, energy consumption, quality, safety, etc., and put forward that monetary policy should be stable and neutral, maintain basic stability of liquidity, while maintaining exchange rate flexibility, keep the RMB exchange rate basically stable at a reasonable and balanced level, put prevention and control of financial risks in a more important position, focus on prevention and control of asset bubbles, and ensure that there is no systemic financial risk.

Trump's inauguration will trigger international trade friction and appreciation of the US dollar. When Trump is about to take office, his policy proposal to strengthen trade barriers, reduce taxes, raise interest rates and encourage industrial capital to return to the United States will be fulfilled.

The spearhead of strengthening trade wall has been directed at China and Mexico, which may spread to Korea, Japan and even more countries. International trade friction is inevitable, and the international trade environment will deteriorate. The combination of trade protection and tax cuts and interest rates will push the US dollar back to the us to stimulate the development of manufacturing industry, and also provide space for the appreciation of the US dollar.

The EU expects GDP growth in the euro area to decline in 2017. In the wake of the British referendum on the constitutional amendment to Europe and Italy, many other European countries also faced new government elections in 2017. Taking into account the negative impact of political uncertainty on the economy, the European Commission predicted that the euro area GDP growth rate in 2017 was 1.5%, down 0.2 percentage points from 2016.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.