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Domestic Cotton Prices Are Subject To Policy Guidance, And The Industry Calls For The Marketization Of Cotton Prices.

2014/6/10 11:32:00 96

Wang Tiankai, President of the China Textile Industry Federation, said that since last year, the Federation has carried out a large-scale investigation and Study on the cotton management system and market supply problems. The next step is to put forward measures for direct subsidy, large-scale planting and improved varieties according to the findings of the survey, so as to promote the gradual docking of domestic cotton prices with the international market and restore the market adjustment mechanism. 
Di Hui, deputy general manager of Huarun textile (Group) Co., Ltd. believes that the cotton purchasing market policy now being implemented has made cotton farmers' price expectations always upward, but the interests of farmers and the enthusiasm of cotton planting have not been well protected, and a market-based pricing mechanism should be established. P 
 according to the information disclosed at the 2013 China International Cotton Textile Conference, cotton direct subsidy may become a breakthrough in the reform of the market mechanism of cotton. Gao Yong, vice president of China Textile Industry Federation, said that after more than two years of appeals, the cotton direct subsidy policy has been loosened, and more than ten cotton related departments have unified their ideas. 
 > a href= "//www.sjfzxm.com/news/index_c.asp" > futures < /a > itself is a quite sensitive financial tool for marketization. Through direct subsidy, it will help to form a market less a href= "//www.sjfzxm.com/news/index_c.asp" > pricing mechanism < /a > cotton will not remain in the current price center, futures price fluctuation will intensify, and more trend market will appear, and the position and market level will be promoted. 
 in addition, some market-based cotton futures new varieties are accelerating. It is understood that the big business will promote the development of cotton yarn variety demonstration work, further improve the cotton yarn futures contract and system, prepare for the application of the contract listing; Zheng Shang recently held a demonstration meeting on cotton yarn futures contract rules. 
 Huang Junfei believes that < a href= "//www.sjfzxm.com/news/index_c.asp" > cotton yarn < /a > is a highly marketable variety, and there is a strong demand for hedging in enterprises. As the cotton market is subject to policy constraints, textile mills, especially some large textile mills, hope to seize market opportunities with new futures tools such as cotton yarn and achieve higher profits. 
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 for cotton textile enterprises, the high cotton price and high price difference make the enterprises lose competitiveness in the global market. According to Louis Da Fu, in order to protect the cotton farmers' income, China's purchase and storage price is more than twice the cost of cotton planting in the world. Therefore, the cost of using cotton in China's textile mills is at least 50 cents higher than that in other countries in the world. 
 high cotton price has suppressed the demand of domestic cotton, and domestic enterprises have imported large quantities of cotton yarn products from India and Pakistan. Chen Jiumei, director of China market of PC I fiber consulting company, believes that because of the high price of cotton in China, the cyclical adjustment of cotton production has been affected, and cotton demand has been suppressed at the same time. The cotton in spinning mill is still not recovered, and some downstream cotton demand is provided by imported yarn. 
 "cotton price difference has the greatest impact on cotton textile industry". Zhu Beina, President of China Cotton Textile Industry Association, said that the price of domestic cotton exceeded 19000 yuan / ton, and the price difference with imported cotton reached 4000 to 5000 yuan / ton. Last year, it reached 6000 yuan / ton. Under such circumstances, enterprises are not competitive, and the finished products can not digest.