Domestic Yarn Is Pressed By "One Day Tour" Of Cotton.

Shandong port

With the idea of "one day tour", traders use the quota of processing trade to export the cotton from the port to the cotton warehouse in China, temporarily store it in foreign warehouses, and then enter the domestic market at a low price.

The author thinks that the operation of outer cotton indirectly causes some pressure to the domestic cotton yarn sales, and it also disturbs the order of cotton yarn market.

At present, the price difference between domestic and foreign cotton is still low, generally around 5000 yuan / ton. Some foreign bonded low grade and low horse value 2011/12 annual quotations from US cotton, India cotton and West Africa cotton dropped to 82 cents / pound or even 80 cents / pounds, which stimulated the interest of domestic cotton enterprises and trading companies to purchase, most of them directly declared to pay 40% full customs clearance.

There are plenty of cotton stocks outside the port. If this keeps flowing into China, the price of domestic cotton will be low and the price will continue to be low or even down.

Because of the cost considerations and the support of the state's temporary purchasing and storage policy, the processing enterprises will have a strong desire for price increase, so that the two sides will fall into a stalemate of buying and selling, and the spot market of the lint will have a "break point".

According to China's cotton data, China imported 137 thousand and 624 tons of cotton yarn in September 2012, an increase of 62.29% over the same period last year, and exported 35 thousand and 622 tons of cotton yarn, an increase of 52.33% over the same period last year.

According to the historical data released by the General Administration of customs, 1-6 months in 2012, China imported 661 thousand and 300 tons of cotton yarn, an increase of 63.24% over the same period last year, and a total of 225 thousand and 500 tons of cotton yarn exported, representing a decrease of 2.97% over the same period last year.

Imports of cotton yarn remained high in September 2012, while exports increased substantially compared with the previous year.

Through such a strange way, the port of cotton into the domestic cotton yarn into the domestic, the domestic cotton yarn market, the domestic yarn in the absence of competitive advantages, the market will become more severe, and domestic cotton yarn price pressure, there will be further risk of further decline, textile enterprises to expand the loss surface, production limited, stop production gradually increasing.

A certain Shandong

Enterprise related responsible person introduced, "this year's cotton yarn market compared with last year did not appear to improve, orders even reduced or no increase, the enterprise survival pressure is very large, plus cotton to cotton yarn situation to enter the market, textile enterprises is undoubtedly worse."

But we cannot emphasize the difficulties, and the future of enterprises will be bumpy.

If foreign cotton enters China in such a situation, it will bring greater pressure to the domestic lint and cotton yarn market. With the support of 20400 yuan / ton storage price, the cotton mill will not reduce the lint price in the short term, but the textile mill will not be able to reduce the price.

The single and profit will shrink and shrink, which will lead to confusion in the cotton market.