Different Cotton Market or Major Movements in 2019

In March, the relevant national policy news came out frequently, the development of cotton textile industry may have new changes, the following will make a brief analysis from the recent hot spots.

On March 11, Wang Wei, deputy to the National People's Congress and deputy general manager of Shanghai Textile Decoration Co., Ltd., proposed during the two sessions to deepen the reform of quota management of imported cotton and explore a new model of & ldquo; government guidance + platform support + market operation & rdquo; and so on. In particular, it is pointed out that on the premise of basically maintaining the existing policy, namely, keeping the two modes of application for more than 50,000 ingots by enterprises and designated imports by state-owned trading enterprises unchanged, a certain amount of import quotas are allocated from the total quotas every year to small and medium-sized textile enterprises with production scale of less than 50,000 ingots that are not eligible to declare independently, and carrying out the lsquo for small and medium-sized enterprises. Centralized Management & rsquo; Special Pilot & rdquo;. This may be a new direction for the future reform of import quota of cotton, which will benefit the whole cotton textile industry.

Recently, various speculations about the rotation of reserve cotton have emerged in the market, which reflects the market's demand for reserve cotton and the recognition and dependence of regulatory policies. The author believes that the role of reserve cotton in stabilizing the market will remain unchanged regardless of whether it is rotated or not. From this point of view, there is no need to over-interpret all kinds of conjectures about the rotation of reserve cotton. In addition, 2019 is the last year of the three-year implementation period of Xinjiang cotton target price. How to set the target price this year will have a far-reaching impact on the future development of cotton market. It is believed that the policy of boosting the healthy development of cotton textile market will gradually come to the ground, which deserves the expectation of the industry in 2019.