Reserve Cotton: What Is The Price Of The Rotation?

Reserve cotton should be sold at a market price instead of government pricing.

Huang Hongyu, President of Tongzhou cotton industry group in Henan, said: "the purpose of state dumping is to stock, so long as we can sell it, we will win."

If you want to make sure that you can sell, the fixed price is definitely not good. We should adopt floating price as the market fluctuates, and link the inside and outside cotton, and keep the difference between the inside and outside cotton price in the reasonable category.

Cai Yajun, chairman of Hubei Yinfeng group, believes that it should be issued according to the current cotton price index, which not only protects the circulation enterprises, but also protects the textile enterprises.

Chen Tao, general manager of Louis Dreyfus Corporation, said that the price of the reserve cotton can be determined by floating with the CotlookA index.

The index is the average price of 5 countries M 1-1/8chr (34) on the same day on the same day, and the average price of cotton delivered to Bremen in 3.5~4.5. The price is unlikely to be affected.

The cotton trade in Uzbekistan is based on the index, and the US subsidy policy also uses the index as the basis.

Cotton enterprises and cotton traders are worried that once the cotton reserves are released in 3 and April, the spot stock of cotton will not sell.

There are also professional suggestions that from the perspective of spinning enterprises, once the cotton reserves are released,

In terms of price, it will be challenged again. Therefore, cotton enterprises and cotton merchants with large inventory should sell as soon as possible if they have low grade cotton.

In the face of the continued decline in cotton prices, how will cotton enterprises respond? A cotton manufacturer in the mainland said that the cotton market continued to weaken, and the domestic cotton structure was in disorder, which basically stopped the acquisition work, especially for low quality cotton, either to reject or lower the price.

Later storage cotton rotation, due to the long storage time of storage cotton, has a greater impact on color and other indicators. After upgrading, it will have a certain price advantage.

It brings pressure.

Yang Zhijiang said the basic principle is to make China's cotton price competitive.

He predicts that if China's cotton price is close to the domestic price of cotton production, it should be priced at 10000 yuan / ton. If China's cotton price is close to the port CIF price, the national reserve cotton reserve should be priced at 11500 yuan / ton.

Previously, the market "rumor" of "low price" round out, its theoretical effect may include reducing.

To lighten the financial burden, but for large cotton textile enterprises, "low price" turns out to be more like a disaster.

Because, in recent years, large and medium sized cotton textile enterprises have a good stock, and the low price of the reserve cotton will make their inventory face huge losses.

And small and medium-sized enterprises will be put into battle without stock. The price of cotton yarn is more advantageous than that of large and medium-sized enterprises. The capacity of recovery may increase the supply of the market, and enterprises will sell each other to reduce prices, so that enterprises will still not get the desired profits.

Therefore, large and medium-sized textile enterprises will be greatly affected.