Short Term Domestic And Foreign Cotton Price Gap Is Difficult To Shrink

< p > "if you want to import cheap cotton abroad, you must eat it in proportion to the domestic high priced cotton."

Shaoxing County, a a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a >, the person in charge of the enterprise told reporters that although the domestic cotton price and foreign cotton price difference had fallen below 4000 yuan / ton before, the policy of purchasing and storing for the protection of cotton farmers and the quota system for import restriction still made the cotton textile production enterprises face the high cost pressure.

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< p > < strong > cotton price upside down at home and abroad < /strong > < /p >

< p > < strong > the contraction space is not large in the short term < /strong > < /p >.

< p > to ensure the interests of cotton growers, China began to implement the policy of temporary collection and storage of "a href=" //www.sjfzxm.com/news/ "> cotton < /a > since 2011, and domestic cotton prices fluctuated around the temporary storage price.

However, this practice has expanded the domestic and foreign cotton price differentials to a certain extent.

Due to the lack of international market demand and the expected impact of high yield, cotton prices in the international market showed a downward trend in the past two years. The difference between cotton prices at home and abroad was over 6800 yuan / ton, and the difference is still between 3500 yuan and 4000 yuan per ton, which has a great impact on the competitiveness of the textile industry.

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< p > huge price differentials not only make big enterprises miserable, but those enterprises that are small in scale or mainly in the production of medium and low grade cotton yarn are facing the pain of industry shuffling.

"At home and abroad cotton price difference at less than one thousand or two thousand yuan per ton, the industry can still be hedged by technological progress and variety development.

But when the price of cotton spreads to three thousand or four thousand yuan or more per ton, the losses caused by the high cost can hardly be made up in other ways.

Insiders told reporters that at the same time, apart from raw materials such as exchange rate, labor costs and other issues, to varying degrees affect the profits of cotton spinning enterprises.

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< p > this year, the gap between domestic and foreign cotton prices has been shrinking. As of June 19th, China's cotton price index was 19320 yuan / ton, and the difference between the cotton price and the foreign cotton price has fallen below 4000 yuan / ton, which made some textile enterprises see the dawn of hope.

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< p > but many professionals predict that there will be little room for shrinkage of cotton prices at home and abroad in the short term.

"It is not easy to maintain the price difference of 3000 yuan per ton this year."

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< p > < strong > compression enterprise cost < /strong > /p >

< p > < strong > quickening the pace of turning to non cotton products < /strong > < /p >

< p > reporter also learned in the interview that some cotton spinning enterprises are not deterred by the high a href= "//www.sjfzxm.com" > cotton price difference < /a > at home and abroad. Instead, they have accelerated the pace of turning to non cotton products and reopened the market.

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< p > "formerly a href=" //www.sjfzxm.com "> cotton textile products < /a > accounted for the majority, but this year's total export volume of textile products accounted for more than 65%, cotton yarn orders are still there, but the amount is small, so the impact is not particularly big.

Chen Xuefeng, general manager of Shaoxing unique Trade Co., Ltd., told reporters that after the financial crisis, they also judged that according to the international situation, the cotton textile products exported to Europe and America were few, and they moved to the market of South America, Russia and other markets, opening up middle and low market, and striving for small profits but quick turnover at a relatively affordable price.

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