Xinjiang'S Cotton Market Faces Huge Challenges In 2017/18

With the rapid digestion of cotton processing enterprises' inventory and the steady growth of the futures and spot market, the cotton business in the mainland has launched a tour of the cotton industry in Xinjiang, negotiating a package factory or leasing a production line.

From the survey, it is prudent for the cotton enterprises in the mainland to make decisions and sign contracts for the 2017/18 year.

Then, before entering the Xinjiang Bao factory in 2017/18, the following five problems should be solved first.

In 2017/18, the cost of contract and production line increased.

By 2016/17, the production and sale situation of machine picked cotton in Northern Xinjiang is excellent. The machine picked cotton has excellent performance in fiber length, fracture strength and horse value. It has been widely recognized and paid attention by the mainland spinning enterprises, and the overall profit of the cotton ginning factory is 300-500 yuan / ton.

Due to the low fracture strength and the poor quality of hand picked cotton in southern Xinjiang, the trend of departure is obvious now, and cotton enterprises have gradually implemented a solution or a little profit.

Therefore, in 2017, the contract cost of the inner ginning mill continued to rise, and the annual contract fees in Shihezi, Kuitun and Shawan were generally 180-220 yuan (a processing line). The contract fee of hand picked cotton ginning factory in southern Xinjiang, Akesu and Korla also rose to 100-200 yuan.

2017/18 year

Cotton growers have higher expectations for seed cotton purchase prices.

Judging from the survey, due to the increase in plastic film, fertilizers and pesticides this year, especially the increase in labor costs, the cost of physical and chemical production of cotton has increased significantly, with an estimated growth of 50 yuan per mu.

In the 2017-2019 year, the target price of Cotton Subsidy in Xinjiang was stable at 18600 yuan / ton. In addition, some cotton areas suffered disasters during sowing and seedling emergence, which affected the yield per unit area.

Therefore, the price of seed cotton purchase approved by farmers will be no less than 8 yuan / kg, and the stalemate and differences between cotton growers and cotton processing enterprises in 2017/18 will be normalized.

The area of cotton planting worldwide has increased significantly.

From a statistical point of view, the US cotton planting area increased by more than 12% in 2017. The enthusiasm of farmers in India was high, and the sown area was four times that of the same period last year. In addition, the cotton area in Australia, Brazil and Africa was growing rapidly, and the global cotton supply in 2017/18 increased in an all-round way, and the relationship between supply and demand was reversed.

There is no doubt that the risk of enterprise operation will be enlarged.

Since 2015, the cotton industry in the territory has been continuously integrated and reorganized, and the individual flower mill is not easy to survive.

Although there was a certain rebound in cotton planting area in Xinjiang in 2017, the growth of Hutubi, Manasi, Shawan, Yili and other places was relatively obvious, while the growth in southern Xinjiang and eastern Xinjiang was relatively slow. However, the acquisition, processing and sale of seed cotton formed by several key cotton enterprises had already formed, and resources and funds gradually formed a joint force. The layout and penetration of leading enterprises in the whole industrial chain were the original intention of all parties.

Bank loans mainly support large cotton groups.

Considering the territory

There is a serious lack of matching with the lint processing capacity; small cotton processing enterprises are short of funds, sales channels and sales methods are relatively narrow, plus the policy orientation of the autonomous region, therefore, the elimination of "processing capacity is weak, anti risk is not strong, technological pformation is lagging behind" of the ginning factory becomes inevitable, the bank's support for some cotton enterprises weakened and even the overall stop lending is a major trend.

The cotton enterprises involved in the Xinjiang Bao factory not only inspect cotton resources, but also inspect cotton resources.

In addition to processing capacity, credit support can not be ignored.

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