Domestic cotton prices rose slightly

Recently, China's cotton prices have risen slightly, while the prices of imported cotton have declined. Industry sources said that since the implementation of the Cotton Direct Subsidy Policy, domestic cotton prices have continued to fall, narrowing the price gap with imported cotton, but the recent rise in domestic cotton prices has once again opened the gap with imported cotton prices.

In March, China's cotton prices rose slightly, while import cotton port prices declined. Industry sources said that since the implementation of the Cotton Direct Subsidy Policy, domestic cotton prices have continued to fall, narrowing the price gap with imported cotton, but the recent rise in domestic cotton prices has once again opened the gap with imported cotton prices.

Domestic cotton prices rise

It is understood that the purchase price of domestic seed cotton has risen steadily before the Spring Festival. At present, Shandong, Hebei and Jiangsu provinces, seed cotton to factory prices concentrated in the 2.75 ~ 3.20 yuan / kg, compared with the previous increase of 0.01 ~ 0.05 yuan / kg. According to industry sources, Anhui, Gansu, Jiangxi, Shandong, and Hebei provinces issued the 2014 cotton subsidies implementation plan, but the introduction of the policy was relatively late, and the cotton planting efficiency was not good. Farmers switched to other crops and cotton planting area continued to shrink. According to the investigation of cotton planting intention area in January 2015, it is expected that the national average planting intention will decline by about 25.4% in 2015. It is foreseeable that cotton production will also decline, which will add to the favorable atmosphere for the market. In addition, the acquisition of post-seedling cotton has entered the latter part of the market, the remaining supply is not much, and the current cotton farmers are not eager to use the money, reluctant to sell at low prices, behind the price, making the recent domestic prices of local seed cotton rose.

At the same time, the spot price of lint increased steadily. At present, the factory price of 3128-level lint mills in the yam production area of ​​Jilu is between RMB 12,800 to RMB 13,300 per ton. The factory price of 4128-level lint products is between RMB 12,500 and RMB 12,800 per ton. In some regions, the spot price of lint cotton is increased by 50 to RMB before the Spring Festival. 200 yuan/ton. Some market analysts have analyzed that from the raw material point of view, the purchase and sale of domestic seed cotton has entered the late stage, the market left few supplies, and the cotton planting area in the new year fell, the cotton growers behind the price of seed cotton, the price of raw materials rose, and the production cost of the ginning factory increased. Therefore, spot cotton spot prices have risen. From the inventory point of view, the overall boot rate of the ginning factory after the holiday is not high, and the textile companies make up the bank, and the ginning factories are also sold one after another. Currently, the inventory is not large, most of the cotton is concentrated in the State Reserve, as long as the State Reserve does not sell. The market supply is not large, so the ginning plant also backed the price, making the spot price of lint cotton rise recently.

Imported cotton prices fell

Different from the increase in domestic cotton prices, the prices of imported cotton in China's main port have dropped sharply in recent days, and all varieties are generally lowered by 1-1.2 cents. Although the price of imported cotton has declined in recent days, it is still significantly higher than the level of the same period last year. The current price quotes are still not far behind the psychological price of textile mills.

The reporter learned that, at present, the International Cotton Index (SM) 76.01 cents / lb, down 16 points, equivalent to the general trading port delivery price of 11,940 yuan / ton; International Cotton Index (M) 71.07 cents / lb, down 17 points, equivalent The general trading port pick-up price is 11,177 yuan/ton; in the SM1-1/8′′ grade cotton, the US C/A cotton offer is 82.35 cents/lb, equivalent to the general trading port pick-up price 12919 yuan/ton; the United States E / MOT cotton quoted at 75.85 cents / lb, equivalent to *** general trading port delivery price of 11,915 yuan / ton; Australia cotton quoted at 86.42 cents / lb, equivalent to *** general trading port delivery price 13,547 yuan / ton; Uzbekistan cotton is quoted at 79.85 cents per pound, equivalent to 12453 yuan per ton for the general trading port; West Africa is at 72.00 cents per pound for cotton, equivalent to 11320 tons at the general trading port; Indian cotton The quoted price is 69.25 cents/lb, equivalent to the general trading port delivery price of 10896 yuan/ton; the US E/MOTM1-3/32" grade cotton price is 73.65 cents/lb, equivalent to the general trading port delivery price of 11575 Yuan / ton.

There is still pressure on the sharp rise in cotton prices

The industry believes that since the implementation of the cotton direct subsidies policy, domestic cotton prices have continued to fall, narrowing the price gap with imported cotton, but the recent domestic cotton prices rose slightly, once again opened the gap with the import price of cotton.

With regard to the future trend of domestic cotton prices, business analysts believe that there is still pressure on the sharp rise in cotton prices. At present, the weakness of the cotton market is not conducive to its market. The market rumors that China's massive cancellation of orders has brought pressure on the cotton market. At the same time, the weaker demand also restrained the rise of spot lint prices. After the Spring Festival, the domestic textile enterprises did not fully resume their work and the market demand did not recover. Some small textile companies that have already resumed work have limited restocking capacity. Usually, they choose to use their purchases or purchase small batches or batches for purchases. Heavy, making the cash cotton spot transaction is not ideal. Therefore, with the support of high cost and limited supply of lint cotton, it is expected that the spot price of short-term lint may be slightly higher than that of the short-term lint. However, due to weaker market demand, there is still pressure to increase sharply.