2016 Domestic Market Trend Analysis Of Imported Cotton Yarn

At present, at home and abroad

Spreads narrowed further.

Cotton is gradually moving back to its inferior position, especially in 2015, when the import quota of 894 thousand tons of imported cotton was restricted in 2015.

The impact of cotton yarn on domestic cotton yarn market is likely to be eased in 2016.

In 2015, imported yarn did cause great pressure to domestic textile enterprises. Especially in the field of low and medium yarn, cotton textile such as India and Pakistan entered into an unbounded situation.

Nowadays, with the further narrowing of cotton price difference at home and abroad, imported yarn has gradually declined after losing the advantage of raw material cost.

When imported cotton yarn reached its high level in 2013, there was a downward trend.

Wei Gangmin, chairman of Tongzhou cotton industry in Henan, said at the fourth China Cotton essence forum in 2015: "the price of cotton used by domestic textile enterprises in India should be around 8800 yuan / ton, and at present, the price of domestic cotton enterprises to be used for factory cotton should be 12800 yuan / ton and 4000 yuan higher.

From the perspective of raw materials, the competitiveness of China's textile enterprises simply can not consume the difference of 4000 yuan.

A professional in the industry also said that the imported yarn was mainly concentrated in 40s, especially the products under 32S. Cotton price inversion at home and abroad is hard to reverse. Cotton yarn imports will become a trend. What will change in the future is the increment of import increments every year.

In addition, benefiting from the preferential policies of textile industry, a large number of mainland textile enterprises have pferred to Xinjiang to invest and build factories. Despite the shortage of manpower, the pace of construction of Xinjiang's textile industry is accelerating. The three cities, seven gardens and one center of the design plan are also showing real capacity.

It is reported that by the end of 2015, the scale of the Xinjiang textile industry has reached 10 million spindles, and the cost of cotton yarn per ton is lower than that of the mainland by 3000 yuan after combined subsidies.

At present, Xinjiang's textile factories mainly invest in the production of medium and low counts pure cotton yarn, which will play a very important role in resisting the impact of foreign cotton yarn.

In addition, with the tax reform and power reform in Central China in 2016, the disadvantages of Chinese textile enterprises may be gradually reduced.

There is also a trend that cotton consumption in China has gradually declined in recent years. According to the national cotton market monitoring system data, domestic cotton consumption in 2015 is expected to be around 7 million 150 thousand tons. Due to the gradual reduction of demand, imported cotton yarn will inevitably be affected, especially in the field of low count yarn.

In 2016, domestic cotton prices will continue to operate under the expected cotton reserve price. The domestic and foreign cotton price differentials will be further narrowed.

Above all, it will not be very easy to import foreign yarn into China as smoothly as before.

After all, China's cotton textile industry can not be replaced by Southeast Asian countries with its mature technology, especially in the weaving industry with high technology content.