How Will Cotton Market Develop After The Cotton Textile Industry Shuffle In 2016?

Talking about the present

Many people in the industry are pessimistic, but others believe that good luck is gathering. There is great hope for the cotton market in 2016.

"It is a great benefit to announce the target price ahead of schedule."

Mr. Zhao, head of a cotton enterprise, said this year

The announcement is earlier, the policy face is clear and the market confidence has been boosted.

The price of 18600 yuan / ton, though lower than that in 2014 and 2015, is much higher than the current one.

The price is higher than the expectations of all parties in the market. It reflects the intention of the state to protect the basic income of farmers and stabilizes market confidence to a certain extent.

In addition,

It also reflects the policy's concern for the market.

Recently, Yin Jian, deputy director of the economic and trade division of the national development and Reform Commission, introduced the policy of the cotton reserve rotation in the industrial meeting. First, the normalization of the rotation was achieved, which would stabilize the market expectation to the maximum extent. A number of national cotton stores were turned out every year to reduce inventory and meet the market demand when the green land was out of stock. The two is to realize the pricing mechanism and to determine the base price of the wheels in line with the market.

This change made the sale of national cotton store more close to the market situation, and would not cause the market to deviate, thus making the spot market more stable. Three, the departure time was postponed to the middle and late 4 months, and the control of the number of rounds or the arrangement of imported cotton would be delayed later than most people's expectations, which would help cotton enterprises to tighten their sales and promote the sustained and healthy development of the industry.

It is the good side of policy that the market is changing quietly.

1, Zheng cotton futures bottomed out.

The price of each contract stands on more than 10300 yuan / ton, and the delivery month is close to the spot price at 11000 yuan / ton; 2,

Cotton prices have stabilized.

On the 24 day, the Akesu platform 3128B cotton picking price was about 12100 yuan / ton, and the 2128B grade was 12200-12300 yuan / ton.

According to cotton traders, the price of hand picking cotton and machine picked cotton has remained stable in recent days, basically holding 12000 yuan / ton mark.

In addition, Xinjiang's hand picked cotton has moved steadily to Hebei, Shandong, Jiangsu and other places. The price center of gravity is in the range of 12200-12600 yuan / ton; 3, the price of real estate cotton is slightly oscillating.

Due to the selling mentality of some cotton enterprises in the mainland, the price of real estate cotton has fluctuated, but the extent is small. Among them, the 3128 grade lint price is around 11800 yuan / ton, and the individual quality is better than 12200 yuan / ton.

"The key is that everyone's confidence has been strengthened."

A market source said that although the price of cotton is still hanging upside down, about 10000000 tons of cotton reserves remain high, but the policy is good, especially in the downstream cotton enterprises, and profits should be gradually restored. In 2016, there should be great hope.

With the fall of cotton prices, most of the downstream textile enterprises have turned from loss into profit or deficit. Especially after the cotton textile industry has been shuffled, the surviving enterprises will be reborn like Phoenix Nirvana.