China, Cotton Industry, Market Structure

At present, the supply and demand situation of China's cotton market is high inventory, declining production, reduced demand, low cotton prices, and reduced domestic and foreign cotton prices.

In the new market situation, China's cotton industry is facing new challenges and development.

Gao Fang, executive vice president of China Cotton Association, said that after a period of rapid development, China's cotton industry needs structural adjustment and necessary recovery. This is a new pattern for China's cotton industry.

Gao Fang said that in order to find out the current development of cotton industry in China, we should start with cotton output, demand and inventory.

At present, China's reserve cotton

It's called "sky inventory".

From 2011 to 2013, the total amount of storage and storage in the past 3 years was 16 million 430 thousand tons, and 6 million 910 thousand tons were put into operation. At present, there are still more than 11 million tons of cotton stocks in China.

According to data from the US Department of agriculture, China's cotton stocks account for more than 50% of global cotton stocks.

In order to digest domestic cotton stocks, the country began to reduce cotton planting area in a planned way.

According to the National Bureau of statistics, the cotton planting area in 2015 is 56 million 980 thousand mu, the lowest in nearly 13 years. The cotton output in the whole country is 5 million 610 thousand tons, of which the output of cotton in Xinjiang is 3 million 500 thousand tons.

With the decline in cotton production, the whole country

Great changes have taken place in the layout.

Gao Fang said that China's cotton production was concentrated in Xinjiang and other advantageous regions, which brought about regional changes in cotton processing layout, and the number of cotton processing enterprises in the mainland was relatively reduced.

As of May 10th, data from China Fiber Inspection Bureau showed that 1100 cotton processing enterprises in fair inspection in 2015 were reduced by more than 441 compared with the same period last year.

Among them, 752 enterprises in Xinjiang, accounting for 68% of the whole country, decreased by 53 compared with the same period last year, and 348 mainland enterprises, accounting for 32% of the whole country, down 388 from the same period last year.

Xinjiang cotton notarization test cotton accounted for 91% of the national total.

Domestic cotton prices fall below the main melody.

At present, China's cotton prices are gradually integrating with the international market, and the difference between domestic and foreign cotton prices is gradually narrowing.

In April, China's cotton price index was 12478 yuan / ton, down 6.8% compared to the same period last year. This is because the cotton spot price has returned to the market after the implementation of the target price subsidy policy, and the cotton price has changed greatly.

Gao Yong, vice president of China Textile Industry Federation, said that in the past 4 years, the development of China's textile industry mainly depended on the growth of chemical fiber consumption. In contrast, the proportion of cotton consumption decreased, but the total consumption of cotton fiber in China was not much reduced.

He said: "in 2015, cotton consumption in China was about 6 million tons, which was reduced by about 4 million tons compared with the peak period, but the consumption of about 2 million tons was made up of imported cotton yarn. Therefore, compared with the maximum value, the actual consumption of cotton in China has decreased by about 1000000 tons, and I believe this about 1000000 ton will also be recovered."

Gao Yong analysis, from the end of last year to the last few months, when domestic and foreign cotton price difference was below 1500 yuan / ton, low coarse cotton yarn imports began to reduce, domestic cotton yarn processing began to grow, and domestic cotton yarn exports began to recover.