Cotton Prices Will Not Rise And Fall This Year

As of January 9th, the total volume of temporary storage and storage of cotton has reached 2 million 380 thousand tons in 2011. Of these, the total turnover of Xinjiang cotton is about 1 million 500 thousand tons. It is not particularly difficult to conclude that the end of the March 31st sales period will be 3 million tons. This is the information disclosed by Gao Fang, executive vice president and Secretary General of the China Cotton Association at the seventh annual meeting of the China spinning Roundtable forum.

Gao Fang said that the cotton price in 2012 will not reproduce the ups and downs. From the perspective of demand, cotton spinning Fabric export Dependence Relatively large, accounting for about 40%, the overall downturn in the external demand market this year will not significantly increase cotton demand, and the upgrading of domestic demand is not achieved in a short time. Therefore, the demand for cotton will not rise significantly. From the perspective of policy regulation, this year, the state has strengthened its capacity to regulate and control cotton prices through strengthening the collection and storage. Last year, because of less reserves, there were hundreds of thousands of tons left after dumping, leaving room for speculation in the market. About 3 million tons this year. Regulation Ability will surely play a stabilizing role in the market.

When it comes to the new round of purchasing and storage prices in 2012, Gao Fang said that there is no conclusion yet. If the price of cotton and wheat at 1: 10 is determined in 2012, the minimum protection price of wheat has been raised, so the price of cotton purchase and storage should be set at 21400 yuan / ton. But the implementation of this price is really difficult because the domestic cotton price can not be much different from the international market cotton price. She said: "one thing is for sure, the sale price in 2012 can not be less than 2011. There is a possibility that the policy of State purchasing and storage will continue to provide a bottom line, and that the price of cotton will drop sharply.

Gao Fang also pointed out that with the rise of cotton prices in the previous year, textile enterprises are trying to replenishment of stocks, and large and medium-sized enterprises usually have 3~5 months inventory. But with the fall in cotton prices, some enterprises may also keep inventory for about 1 months, and SMEs basically have no stock, just like buying vegetables. "I think the next textile enterprise should start buying, so don't wait for cotton prices to enter another market."