The company looks forward to the listing of cotton yarn**

"From 2011 to 2013, China opened more than 15 million tons of cotton for storage and storage, resulting in a large price gap between cotton and cotton yarns at home and abroad. Last year, the number of imported cotton and cotton yarns in China increased to 4.42 million tons and 2.38 million tons, respectively. Domestic cotton textiles The market competitiveness of enterprises has been weakened, and business operations have encountered great difficulties.” Zhang Wenmin, general manager of Wanda ** Cotton Industry Division, told the ** Daily reporter.

In the new year, Xinjiang's production areas will start pilot cotton target price subsidies. Once the policy of withdrawal and storage is withdrawn, the cotton and cotton yarn prices will fluctuate more frequently and the market activity will increase significantly. “Over the past three years, about 90% of cotton purchased by domestic cotton companies has entered the State Reserve, which has caused domestic cotton to leave the market for a long time and the quality of cotton has also declined.” Relevant sources believe that under the new market pattern, Xinjiang Cotton Even all domestic cottons need to re-establish sales channels, and textile companies will shift from actively purchasing imported cotton to purchasing domestic cotton. Enterprises in the cotton industry chain need to obtain price information through the ** market, but also need to use the ** market to provide a stable external environment for production and operation.

Wu Faxin, general manager of Greater China of Guangzhou Aizao Import & Export Trading Co., Ltd., believes that if the cotton yarn is launched, it will be of great benefit to the entire cotton textile industry chain. The number of companies involved in the cotton textile industry chain is large, and the price transmission mechanism between cotton, cotton yarn and downstream end products is very complicated. If you do not take advantage of the safe-haven and price discovery features of the ** market, textile companies will be very passive.

"The listing of cotton yarn** will enable textile companies to benefit from various aspects." Wu Faxin believes that the uncertainty of upstream cotton raw material prices and downstream cotton yarn orders has created a large risk exposure for textile companies. Through the combined operation of cotton ** and cotton yarn**, the uncertainty of textile enterprises in operation will be greatly reduced. In addition, the use of spot arbitrage operations can greatly reduce business risks. Textile companies are buyers of cotton raw materials and producers and sellers of cotton yarn and grey cloth products. The use of basis operations can minimize risks and lock in profits in advance.

“Cotton Yarn** can also help companies rationally arrange production plans.” Wu said that at present, most textile companies arrange production according to orders. Once the market orders are not satisfactory, business operations will be in trouble. In the ** market, textile companies can sell cotton yarn for forward delivery in advance, which can guarantee the continuity and stability of production.