How To Operate The Cotton Market Under The New Dumping Policy

Domestic cotton policy and cotton price difference at home and abroad are the most important factors affecting yarn imports.

What will be the impact of the new cotton market and how will it affect imported yarn? At present, the turnover of cotton reserves has continued to be hot. As of June 14th, the cumulative output of reserve cotton in 2015/2016 has reached 788 thousand and 900 tons, with a turnover rate of 98.16%.

Li Zhenhua, a senior analyst at Zhejiang Huarui information Touchplus information Corp, thinks that the policy of storage and storage in 2016 is different from that in the past year, which is the dynamic determination of the bottom price of the reserve cotton sales, the linkage between the bottom price of the sale and the spot price of cotton at home and abroad, and the 100% public inspection of the domestic cotton out of the Treasury, which has solved the most worrying problems of the textile enterprises.

In addition, the auction group of reserve cotton has also been expanded this year.

Direct participation.

For the impact of the new dumping policy on the domestic cotton market, Li Zhenhua mainly analyzed the two situations of throwing and storing and not releasing.

He thought, if

If there is no volume, then the reserves will be kept at 2 million ~210 tons for 500 thousand tons a month. If the reserve cost of cotton yarn is compared, the market supply in September this year will be relatively tight and the price will be strong.

If the volume is thrown, the extrusion of the imported yarn may enter the deep water area, China.

Consumption began to rebound. Cotton prices will be relatively stable in September. The price of new cotton will probably be strong at the beginning, but the latter will gradually become stable.

Li Zhenhua pointed out that under the condition that the exchange rate is uncertain and the price of foreign cotton is falling again, the extrusion process of Chinese yarn to import yarn is likely to be stagnant or even repeated.

If there is no crowding in the share of imported yarn, only the new supply and demand gap will be used to digest the cotton stored in the state, then the digestion process of state cotton can still be relatively slow.

He believes that the "competition" of imported yarn and domestic yarn is just beginning, and its core is cost performance.