Impact of soaring Chinese cotton

The recent soaring cotton market has aroused the country's great attention. In order to discuss countermeasures, on the afternoon of April 20th, the National Development and Reform Commission urgently convened the relevant departments to deal with the abnormal fluctuations in the domestic cotton industry and the possible adverse effects on the cotton industry chain. Influence communication. The ** market, which originally thought that it was influenced by the policy, should stop the soaring rhythm. The clinker bulls still refused to stop. Who is the ultimate beneficiary in this price increase game?

In recent years, the reserve cotton turn-out price has gradually decreased. Especially in 2015, the domestic cotton base price has dropped to 13,200 yuan/ton. In 2016, due to the combination of domestic and international cotton prices to determine the reserve price, the price of the rotation may further decline. However, in the expectation of a turn-out price drop, the ** market runs counter to it. Market participants have speculated that, in the absence of fundamental changes, the current soaring situation is entirely dominated by off-site funds and is an act of excessive speculation. In the process of this round of gains, the bulls have obviously benefited greatly. Of course, the cotton enterprises have also benefited a lot. A small number of cotton enterprises not only solved the inventory problem, but also took the opportunity to raise the selling price.

In addition to bulls and cotton enterprises, foreign textile companies also benefited a lot. Starting from January 2015, domestic cotton and cotton yarn imports have gradually declined, although there are some ups and downs in the middle, but the downward trend has not changed. In particular, since January 2016, the domestic cotton and cotton yarn imports have plummeted, and the import volume is much lower than the same period of last year. The main reason is that the price of cotton has dropped, and foreign cotton and cotton yarn have lost their competitive advantage. Reserve cotton is about to turn out, when the turn-out price will be consistent with the international cotton price, the external yarn price advantage no longer exists, and the outer yarn main market is China. Once the export is blocked, it will be a fatal blow for them. At present, the domestic soaring cotton price seems to let the outer yarn companies see hope again.

An industry insider said that China's cotton skyrocketed, benefiting from foreign textile companies. If the price continues to rise, import yarns will flow into the country and textile companies simply cannot resist. This will have a great impact on the domestic textile industry. The so-called "snapping crickets, yellow tits in the post," foreign textile companies really can take advantage of the fishermen?