China'S Cotton Consumption Plays An Important Role In The US Market.

Jo Nicosia, JoeNicosia, executive vice president of Louis Da Fu, held in Sanantonio's cotton planting belt conference in 2013, said that China's purchase price of domestic cotton was 1.25 US dollars / pound, but weakened the competitiveness of China's domestic a href= "//www.sjfzxm.com/" target= "_blank" > textile > /a > industry, and hurt the global cotton demand.

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< p > restoring the economic health of China's textile mills is complex. However, from a long-term perspective, the balance of the world's fundamentals can be obtained, possibly to the 2014-15 sales year.

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< p > Nicosia says that China has built up a huge stock of cotton reserves, about 46 million packs, including cotton imported from the United States and other countries (regions) and cotton purchased at high prices from its own farmers.

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< p > Nicosia says that China is a bit of a tiger.

If China sells high priced cotton reserves to domestic textile mills for 1.25 US dollars, China's textile mills will compete against other textile mills in the world and encourage factories to increase the proportion of polyester blended.

If China sells cotton at a more competitive price, China will lose more than 10 billion dollars.

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At the same time, China's inventory in the "a href=" //www.sjfzxm.com/news/index_s.asp "> cotton market < /a > has weakened the impact of the 80 million end of the world end inventory, which is a record high.

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< p > "usually this is the cotton price in the 50s of last century," said Nicosia.

Because China's cotton did not enter the market, we were in the 70s of last century.

However, as long as China continues to implement the policy of increasing inventories, the situation will become worse and worse.

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"P". "We are stuck between two forces.

China has decided to support cotton prices at a very high level.

The problem is that we need to lower prices, encourage cotton mills to use cotton instead of using polyester, provide incentives, reduce cotton land, reduce our cotton supply, and let us return to equilibrium.

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< p > "sounds bad for ginning plants, but we need balance of supply and demand, so we can achieve some long-term growth and success.

But today, these high prices encourage overproduction.

As long as China continues to support the world market and absorb additional cotton supply, it will be difficult for us to find a balance in the world.

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< p > < strong > increasing consumption is also crucial. < /strong > < /p >

< p > Nicosia says: "the world needs China's needs."

He said: "we must find the needs of China.

China has the leading position. China is the largest textile manufacturer and cotton consuming country in the world.

If we can not find the consumption of China, it will be a disaster.

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< p > "to achieve this, we must provide cotton with competitive price for textile mills.

Once this is done, cotton consumption will start to pick up again, and we will be able to cope with the increase in output.

World consumption is usually between 123 million and 124 million packs.

Now it falls to 106 million packs, and 17 million bags are not consumed.

This is because of China.

We must find the cotton consumption and restore consumption to the past.

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< p > this will require a balance in the market, Nicosia said.

"At the front end of the market, it must be cheap enough to promote cotton consumption and encourage cotton mills to use cotton.

The backend market is well prepared to protect the area.

We do not want to collapse completely.

We know it's hard to find it back when this happens.

In the year of 2008-09, cotton prices plummeted and the area collapsed. Before we had to take a substantial increase in the price level, we had been vigorously promoted by planting areas all over the world.

We do not want to cause that wild trend again.

"Nicosia does not believe China will suddenly dump huge reserve stocks into the market:" they spend a lot of money on cotton.

However, these a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > stocks will hang on the market for quite a long time, which is a very disappointing thing.

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