When Will The Inventory Go To The End Of The Cotton Textile Industry?

The state owned cotton's inventory of tens of millions of tons is really worrying for the cotton textile enterprises. Especially for the uncertainty of the policy of cotton rotation, it is even more worrying for the enterprises. Even the enterprises have compared the national cotton stores with the "scourge of floods".

In this regard, the NDRC has already made clear that the national cotton reserves

It will not suppress the market space of new cotton.

The future cotton reserve policy should also be closer to market demand, respond to the market crisis quickly, release the explicit anticipation ahead of time, and give the market parties more time to respond.

The role of state finance is also used in the real needs of the industrial chain.

At present, China's cotton inventory mode has been opened, especially in the country's cotton planting area decline and production decline, the national cotton storage to accelerate the pace of inventory.

In this regard, cotton futures analysts said: "the national cotton reserves have parity and low price, the parity is difficult to inventory, low prices can be understood as cotton prices and international standards, and" track "where? The cotton to port price (according to 1% quotas) has been around 11500 yuan / ton recently.

Or the discount factor is about 10000 yuan per ton.

In India, Pakistan and Vietnam, the cost of cotton in several important cotton countries is slightly lower than this price. Only with foreign cotton prices being flat or lower, will China's cotton go out of stock to speed up.

In addition, there are people in the industry believe that only when the cotton price and import yarn quantity decline simultaneously, China's reserve cotton inventory will have a way out.

Even if the new cotton is not in the market, it is still uncertain whether the reserves of cotton reserves will change in 2016.

Indeed, China's cotton reserve policy is actually how to make the market play a decisive role in the allocation of resources and better play the role of the government.

That is to say, when the market plays a normal role, the state reserve cotton is relegated to the second line; when the market function fails, and when needed, under the basis of laws and regulations, the government can control the cotton market in China by distributing the "banner", and the allocation of cotton resources can not be matched by any policy.

In this regard, cotton analysts believe that the "harvest" and "out" of cotton reserves should be at the same frequency as the market pulse, and there should be a complete legal framework to stipulate the timing of the reserve policy.

China's economy has entered a new normal, and all walks of life also need to enter a new development space.

The cotton reserve policy, which has attracted much attention from the market, should become a pacesetter for the reform and innovation of the cotton industry. This is the first step to clarify the boundary between the government and the market.