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Domestic textile enterprises are facing difficulties, the weight of the cotton purchasing and storage policy City

Published on:2013/12/18 11:47:32

Keyword:Cotton, prices, markets, cotton, cotton yarn, statistics, clothing, case status, index
Introduction:This is a soft white cotton thing, but it processes the "no shirk." Under the influence of the closing throwing Reserve policy, the domestic cotton fu...

This is a soft white cotton thing, but it processes the "no shirk."
Under the influence of the closing throwing Reserve policy, the domestic cotton futures traded tends to be light, the price system to show signs of distortion. The textile industry is also increasingly difficult situation, farmers planting enthusiasm has not significantly improved. In essence, the existing cotton purchasing and storage policy has now become market-oriented reform of the cotton textile industry roadblocks.
Market prices are distorted
With the development of the textile industry along the coast, beginning in 2000, cotton consumption in China increased by 4.89 million tons within a decade. 2012 Chinas consumption of cotton 7.84 million tons, is the worlds largest cotton consumer. But the consumer than the 8.27 million tons in 2011 to reduce the 5.27 percent. The current cost of domestic labor and cotton compare with Southeast Asian countries have no competitive advantage. Because the impact of purchasing and storage policy, the domestic cotton costs are far higher than international levels, leading textile companies in trouble.
Current domestic cotton purchasing and storage price 20,400 yuan / ton, throw Reserve price 19,000 yuan / ton, this policy has been sustained since 2012 execution, resulting in long-term domestic spot prices high . But with this, the international cotton prices have dropped significantly. U.S. cotton index hit a record high after the way down 186.70 in 2011, as first Thursday, the U.S. cotton only index closed at 82.61, the price plummeted nearly 56%. Cotton spread abroad the moment no tax up to 4500 yuan / ton.
Although significant spread abroad, but generally not from foreign companies free import of cotton. China today is the implementation of the import quota system, only 894,000 tons of cotton import quotas in 2013, can not meet the needs of domestic enterprises. Domestic cotton market faced with a dilemma: a high throw angle encounter many enterprises cold storage of cotton, a crazy angle enterprises seeking limited import qualified. Domestic cotton price system has been totally unable to react supply and demand of the market, closing throwing Reserve policy and the import quota system separates the price with the supply and demand relationship.
Textile enterprises are facing difficulties
Significant spread abroad to the domestic cotton textile enterprises with a heavy blow. Because the cost of cotton yarn factory accounted for 70% of production costs, the cost of up to 4,000 yuan spread to the domestic textile enterprises with foreign competitors can not stand on the same starting line, domestic export-oriented textile industry tougher and tougher.
North a private cotton companies in charge told reporters Zhang Chunyan, closing throwing Reserve policy implementation to today, cotton has basically earn money. In addition to higher costs than their foreign counterparts a large portion of foreign domestic workers wages rise too quickly, also accelerating the pace of RMB appreciation. Over a long period of time, if the Lord earnings by industrious workers with cheap, but this advantage has been inferior to the Southeast Asian countries.
Exports decline and can not be improved by an increase in domestic sales. At present, Chinas cotton imports although the implementation of controls, but does not restrict the import of cotton yarn, cotton yarn import prices that are sometimes even cheaper than domestic cotton prices, which will undoubtedly further blow to the domestic textile industry.
According to statistics, the first half of 2013 Chinas textile and apparel manufacturing industry losses of 2805 the number of enterprises have been much higher than 2012s full-year 1741. Analysts expected, with the RMB appreciation and rising domestic labor costs, textile and apparel manufacturing industry loss will continue to increase.
Urgent need to reform existing policies
The main objective of Chinas cotton purchasing and storage is to stimulate the enthusiasm of farmers in cotton. However, the survey results have shown that domestic farmers planting initiative in obvious decline. In addition to Xinjiang, China cotton in Shandong, Henan and other regions have adopted a "one a" bulk-type planting pattern. With other crops such as wheat comparison, when the cotton-growing need to spend more and more workers, spraying pesticides, field management, fertilization and other processes significantly more than other crops.
Although to some extent, purchasing and storage price guarantee farmers income, but after purchasing and storage, the cotton crop is still not much compared to other economic advantages, the willingness of farmers to grow more cotton low. Our Cotton Association data show that this year, the National Cotton acreage 6585 acres, nearly 400 acres less than last year, is expected to yield 6.315 million tons, a decrease of 33.7 million tons more than last year.
Cotton State Reserve policy for the positive effect of the whole industry chain depleted. With the same time, the state invested huge amounts of money for the purchasing and storage, spend a lot of social resources. According to statistics, in 2011 the country has invested more than 160 billion yuan of funds have been purchasing and storage, banks need to pay an annual interest of nearly 10 billion yuan. In order to maintain inventory levels up to 900 million tons, a single storage charges on more than 10 million inventory impairment, if considered conditions, the cost of consuming even more amazing. Be able to say, purchasing and storage policy has become a heavy burden.
Close throw Reserves policy to allow Chinese cotton long narrow spot price fluctuations, which affect the body directly present the futures market. Zhengzhou Commodity Exchange, cotton futures have been very active, volume and open interest among the first in the world. Under normal conditions, the average daily trading volume in the main contract hands over one million active period once reached more than 300 million hands. But there have been very few investors are now willing to participate with cotton futures, the benchmark contracts daily average of less than 20,000 hands.
Because the current cotton price volatility is small and does not reflect the actual supply and demand situation, the cotton futures market is not conducive to investment, speculation, hedging is not conducive to business. Futures market has lost the price discovery function of the risk aversion now, investors have gradually been "forgotten."
Judging from the experience of foreign direct subsidies to cotton prices is the best way to carry out market-oriented reforms. In the decision-making attention to market-oriented reforms in the background, a lot of purchasing and storage of agricultural policy will have heard the news to direct subsidies, which also include cotton. Subsidy policy introduced in 2014 is likely to replace the closing throwing Reserve policy.
In addition, the import policy will be adjusted accordingly. Cotton is widely expected quota tariff ceiling will be lowered, it may be beneficial to Chinas cotton imports. After the policy change is expected, higher domestic cotton prices will move closer to international standards, will reduce the spread at home and abroad.      

Keyword:Cotton, prices, markets, cotton, cotton yarn, statistics, clothing, case status, index

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