At present, the domestic cotton consumption has two main flows: the downstream textile industry; a state cotton reserves warehouse. Shouchu prices as high as 12,600 yuan / ton, while the prices of downstream textile industry alone 10300-10500 yuan / ton between. The same grade, the price is a world of difference. Why is this so? Policies to protect the interests of cotton growers as well as the support of the national cotton quality inspection system, to support 400 due to cotton processing enterprises. 400-year Baling cotton processing enterprises in the city of cotton this year, the cold is feeling the warmth of national policy; and 200 cotton processing enterprises are the lifeblood of the struggle. This will give both internal and external problems of the domestic cotton market, what? The author believes that:

1, at present, cotton seed cotton prices reached 2.45 -2.60 yuan / jin (200 cotton enterprises than 400 cotton enterprises to buy low 0.1 yuan / jin around), this also increases the number of space? Shouchu the national price set at 12,600 yuan / jin (now three), the discount price of seed cotton 2.80 yuan / jin around. Department policy is obviously want to try for seed cotton prices to this level, although there are relatively cotton farmers expect a certain gap, but more and more serious international and domestic situation, it may well be acceptable to all prices. However, the price obviously not the desired effect. Why? Analysis of the main reasons for the imbalance in the price of corporate acquisitions or blame. 400 cotton processing enterprises holding a sword, a large profit margins will be earned over bowl overflow basin. 200 cotton processing enterprises not afford price of cotton can only be good at arm’s length, only to linger on in the competition. Is from the left or is no longer a problem. However, the 400-day cotton processing enterprises are also far better than imagined. 1,220,000 tons of reserves compared to close to their processing capacity, after all, fall short of demand, according to my understanding, in accordance with the current size of the Shouchu, about 50% of big cotton into the market, no doubt enhanced enterprise risk, so 400 Cotton-processing enterprises dare not, it can not afford to have a free hand to buy. As a result, the latter part of the cotton market will directly depend on whether additional Shouchu number of countries, the number of how many.

2, the financial crisis has affected China’s real economy, the main export growth of textile and garment industry suffered heavy Pathetique. Rely on international cotton prices pushed up the consumer has become a mirage of hope, their own problems to solve on their own, large-scale government policy of expanding domestic demand, but also gives us hope that the people of cotton. But after all the long road repair far, the 4 trillion of investment plans is estimated that by 2010 in order to be truly effective, how the immediate thing to do? One is to raise the export tax rebate rate, said a rumor is to reach 17%, regardless of the rumors in the official or the public has been confirmed, although it can not simply reverse the situation, the role of small or obvious. One is the RMB exchange rate, recently, the RMB exchange rate against the U.S. dollar in a row U.S. falling, the devaluation of the yuan into the channel is expected to continue to heat up, and textile and garment export industry to bring a little good. This week, the textile industry has continued to increase cotton factory price, the stock market has attracted some of the 200 cotton processing enterprises in the air, if the price of seed cotton in the country Shouchu good under stable, then we cotton from the city of spring Will not be far behind.

Spring is not alone, Yan Chun garden flowers, cotton, market development and prosperity not only on behalf of the 400 processing enterprises to play a role in the market still holds more than half of the 200 cotton processing enterprises is a vital new force. After the big cards, 200 cotton processing enterprises may be necessary to formally say goodbye to us, to give up in spite of, regret, blood and tears, or hope that it will take all the way, leaving in 2008 to the last point a memorable finish.