Cotton Price Differential: The Pain Of Domestic Export Enterprises

< p > at present, the difference between China's domestic cotton and international a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > has been expanded from 1500 yuan ~2000 yuan / ton to 6000 yuan / ton, and is no longer an optimistic figure.

Such a huge spread will directly affect China's textile exports, and may lead to a decline in international competitiveness.

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< p > recently, China's < a href= "//www.sjfzxm.com/news/index_f.asp" > textile > /a > Industrial Federation has said at the textile industry operation press conference that at present, a prominent problem in the textile industry is that the difference between domestic and foreign cotton prices continues to widen. Now the price of imported cotton is 13 thousand yuan / ton plus customs duty, while the current purchase price of the national cotton store is as high as 20 thousand and 400 yuan / ton, the selling price is 19 thousand yuan / ton, and the price difference reaches 6000 yuan / ton.

Compared to last year's 4000 yuan ~5000 yuan / ton of domestic and foreign cotton spreads, the gap widened.

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"P > < strong > why the gap is bigger and bigger? < /strong > < /p >

< p > from the international situation in recent two years, the European debt crisis has brought pressure on global economic growth and suppressed demand for commodities such as cotton.

According to the latest monthly demand and supply report of the US Department of agriculture, the total output of cotton in the world in 2012/13 is about 25 million 899 thousand tons, with a total consumption of 23 million 131 thousand tons, with an excess of supply and demand of 2 million 768 thousand tons, representing a decrease of 1 million 814 thousand tons compared with the same period last year.

However, we can see from the data that even if the supply and demand situation has been alleviated, global cotton is still in a relatively relaxed supply pattern.

Reporters learned that before 2010, China's domestic cotton prices were relatively stable and rarely fluctuated significantly.

However, due to the price fluctuation of the international cotton price "roller coaster" in recent two years, the state has introduced cotton purchasing and storage policy for consideration of the interests of cotton growers and the production of textile enterprises, as well as the consideration of stabilizing the domestic cotton market.

However, at the end of last year, the sharp fall in international cotton prices was unexpected. With the introduction of a quota system for China's import of cotton, that is, enterprises can not purchase cotton in the international market independently, and domestic cotton prices have remained at a high level because of policy protection. Therefore, insiders say that the price difference of 6000 yuan per ton is estimated to be difficult to change.

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< p > Wang Tiankai, President of China Textile Industry Federation, pointed out that the current international cotton market is still oversupply, and the US cotton has not reduced the indication of planting. In 2013, the possibility of a sharp rise in international cotton prices is not large.

From the domestic point of view, the cotton purchase and storage policy of the country will continue to be implemented with greater probability and the purchase price will not be reduced. Therefore, domestic cotton prices will still run high, and the problem of poor cotton prices will continue to exist.

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< p > < strong > the resistance of spinning enterprises is less than /strong > /p >

< p > reporters learned that the huge difference between domestic and foreign cotton prices has affected China's textile exports and further reduced the international market share of China's textile industry.

According to customs data, in 2012 1~11, China's a href= "//www.sjfzxm.com/news/index_cj.asp" > cotton yarn < /a > exports decreased by 8.9% compared with the same period last year, while the import volume increased by 56.1%.

From the international market share of textile industry, the proportion of China's import market in the EU and Japan was 73.2% and 40.1% respectively in 1~11 months, down 1.8% and 1.1% respectively compared with the same period last year.

Gao Yong, vice president of China Textile Industry Federation, said that this has never happened in the past 20 years.

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< p > reporter said that in the past 20 years, the difference between China's domestic cotton and international cotton has always been maintained at 1500 yuan ~2000 yuan / ton, and under such a gap, China's cotton spinning enterprises still maintain strong competitiveness in the international market.

At present, the spread of the price difference to 6000 yuan per ton is no longer an optimistic figure. Such a huge spread will directly affect China's textile exports, and may lead to a decline in international competitiveness.

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< p > industry insiders told reporters that at present, many textile enterprises have already consumed more than half of their cotton stocks. Due to import quotas, they can not buy cheap imported cotton, and the production of cotton products has been affected.

However, due to factors such as cost and profit, enterprises are not willing to buy high priced national cotton stores and use chemical fibre instead of cotton for production.

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