Reserve Cotton Wheel Helps Enterprises To Resist External Yarn Impact And Reduce Spinning Cost

According to customs statistics, in May 2015, China imported 184 thousand and 400 tons of cotton yarn, a decrease of 14.44%, an increase of 21.15% over the same period last year. In September 2014 -2015, in May, China imported 1 million 707 thousand and 900 tons of cotton yarn, an increase of 8.18% over the same period last year. If this increase is calculated, the whole year of 2014/15 in China will be calculated.

The total import volume will reach 2 million 191 thousand and 100 tons (2 million 25 thousand and 400 tons of China's imported cotton yarn in 2013.9-2014.8 months), which is equivalent to the reduction of more than 2 million 300 thousand tons of cotton consumption by Chinese enterprises (the average loss of spinning is calculated by 5%), accounting for more than 35% of the cotton consumption in China this year (according to the estimation of agencies and departments, 2014/15 in China)

The demand is about 6 million 500 thousand tons, and the supply and demand of domestic cotton is basically balanced.

Some foreign traders and cotton yarn traders said that since May, the Chinese government has been able to lower the price considerably due to rumors.

Cotton yarn import tariffs, some India cotton mills and importers have increased the amount of "consignment" of India yarn (not cleared sales), and the tariff has been cut down in July. The domestic cotton yarn can be seen as "covetous", plus Pakistan, Vietnam, Indonesia, Thailand and Central Asia (Uzbekistan, Turkmenistan), the United States and other cotton yarn "add fuel to the flames". It is estimated that the amount of bonded yarn or yarn breakage in 7 and August will exceed 100 thousand tons. Once the tariff is reduced to a reality, the import of cotton yarn in China will increase by a month or more than 8.18%.

The relevant departments will take part in the 7-8 month.

The industry believes that this may play a positive role in blocking the import and export of cotton and cotton yarn into the Chinese market, and is expected to solve the problem of insufficient supply of raw materials for medium and low grade cotton in small and medium sized spinning mills, and it is good for enterprises to reduce spinning costs.

As long as the India cotton yarn is not cut down in the short term, the outer yarn can only be "Chen Bing" port, for the following reasons:

First, as time goes on, the price of CCI is expected to be lower and lower.

It is understood that as of July 1st, the CCI total of 2600000 bags (about 442 thousand tons) had been disposed of, accounting for about 30% of the total CCI collection and storage, and no CCI pferred to the state owned cotton mill about 100 thousand packs.

It is at least 4 months away from India's new cotton market, while India's domestic cotton consumption shows a clear bottoming rebound. The supply of high-grade cotton in India is also in a tense trend. CCI will continue to drop its pressure by increasing daily average reserves and pferring to the state-owned cotton mill.

In June, the factory price of India cotton S-6 remained at 68.80 cents / 30.

In two and 2011, national cotton stores directly impacted India cotton and West African cotton.

1 and 2 July

In Zhangjiagang and other places, India cotton S-6 and West Africa cotton are quoted at 13500-13700 yuan / ton, 14000-14300 yuan / ton, while the price of national cotton "3228" in 2011 will be less than 12800 yuan / ton (including outgoing expenses and auction expenses). The cost of spinning C40S and below cotton yarn at least is lower than 500 yuan / ton at present.

Three, the purchase of national cotton can be through the pledge, financing and other channels to reduce the pressure of purchasing funds of cotton mills, conducive to stabilizing the price of yarn.

In the 5 and June, real estate cotton was almost exhausted; and Xinjiang cotton was heavily affected by the bank's loan repayment, which basically required cash in cash. For spinning mills with C40S and below cotton yarn, they used high grade and high price.

Cotton and procurement ports have been cleared. Cotton, West African cotton, India cotton and cotton spinning yarn are too expensive to digest, and wheel storage or allow cotton traders to enter the market for auction. They also allow cotton textile enterprises to use cotton wool pledge financing (lock resources, pay a certain percentage of deposits, and pay the full amount). At the same time, the competitiveness of yarns and grey fabrics is gradually enhanced while the cost is reduced, and the competition between foreign yarn and domestic cotton in the domestic market share is more intense.