Cotton Textile Market Ups And Downs, When Can We See The Dawn?

"13th Five-Year" will be a crucial five years for China's deepening reform. It is also a critical period for striding forward "textile power" to "textile power", and for China's cotton textile industry, the situation and tasks facing it are still very arduous.

The quality of cotton has become a "heart disease".

During the "12th Five-Year" period, the most painful thing for the textile industry was not "cotton temporary purchase and storage policy".

The inversion of cotton price difference at home and abroad has directly led to the rapid import of China's cotton yarn Market in India, Pakistan and other Southeast Asian countries and regions.

"During the '11th Five-Year' period, China exported a large quantity of cotton yarn, but during the '12th Five-Year' it imported a lot of cotton yarn.

Wang Qingcui introduced that during the "11th Five-Year" period, the average import yarn per year in China was only about 400 thousand tons, and in 2015 of the "12th Five-Year" period, China imported 2 million 500 thousand tons of imported yarn.

In fact, the cotton temporary purchase and storage policy has not only caused the domestic and foreign cotton prices to hang upside down, but also made the quality of cotton in China continue to decline.

Actually, cotton is temporary.

It not only restricts the development of the cotton textile industry, but also reduces the planting area every year, maintaining the status of the world's largest cotton producing country for several years, and handed over to India in 2014.

Textile industry welcomes investment opportunities

The "13th Five-Year plan" of the textile industry has been listed as one of ministerial level planning by Ministry of industry and information technology. It is expected to be released by the Ministry of industry in the first half of 2016.

Li Lingshen, President of China Industrial Textiles Association, believes that for the industry textile industry, the biggest opportunity of 13th Five-Year is that China's economy is still growing at high speed.

Experts say that the industry textile industry is a highly dependent industry of national economy, which is closely related to national infrastructure construction and national policy.

It is estimated that by the year 2020, there will be more than 1 billion vehicles in the world. That is to say, in the next 7 years, the annual increase in vehicle ownership will reach 12%~15%. Therefore, there will be huge room for development of vehicle textiles and will go forward with the improvement of people's living standards.

In addition, on the 6 day, the central parity of RMB against the US dollar dropped 6.53 points, continuing to refresh its lowest level since April 2011.

In the spot market on the shore, the spot exchange rate of RMB against the US dollar fell below the 6.54 barrier and approached 6.55 front-line.

Offshore market, the RMB against the U.S. dollar is further down, breaking the 6.67 level.

After the new year's holiday, the RMB exchange rate against the US dollar has fallen by more than 500 points in less than three trading days, and the offshore exchange rate has dropped by more than 1000 points.

The analysis pointed out that the trend of RMB depreciation can not be changed in the short term, and the listed companies directly benefit from the textile sector.

After the storm is a rainbow.

At the end of the year 12th Five-Year, cotton textile industry in China has finally welcomed two happy events.

Under the joint promotion of people from both inside and outside the industry, it has been implemented for three years.

The temporary purchase and storage policy was finally abolished in 2014. Instead, the pilot project of cotton target price reform was carried out in Xinjiang.

Although the cotton target price reform has achieved good results, it needs to be further improved, and the quality of cotton should be continuously improved to make the cotton industry truly market-oriented.

In addition to the abolition of the temporary cotton purchase and storage policy, another important happy event is the "high levy and low deduction". After years of appeals, the industry finally broke the ice.

In 2014, Anhui province took the lead in putting lint and cotton yarn into the pilot scale of the approved value added tax of agricultural products, that is, the lint used by cotton spinning enterprises can be calculated according to the applicable tariff rate of textiles 17%.

So far, troubled cotton textile industry for more than 20 years, "high levy low button" problem finally loose.

From now on, apart from Anhui, Hunan, Zhejiang, Shandong, Shaanxi, Jiangxi, Jiangsu and other regions have launched the reform plan of "high levy and low deduction". The breakthrough in the reform of "high levy and low deduction" is of historic significance, which is very important for the whole cotton textile industry.

Despite the breakthroughs in the reform of "high levy and low deduction", some details still need to be improved.

It is recommended that the applicable tax rate of cotton value-added tax be adjusted to 17%, so that the corresponding procedures can be simplified and the pressure of enterprise funds can be reduced.

Regional pformation of textile industry has become the trend of the times.

During the '13th Five-Year' period, more enterprises will be encouraged to layout from two domestic and foreign markets, and further enhance the competitiveness and influence of China's cotton textile industry in the world.

Wang Qingcui said.

When it comes to the shift to Africa, Wang Qingcui argues that Africa is indeed a potential industrial pfer place with lower production costs.

But from the present point of view, Africa is far from the market and the industry chain is not perfect, so the pfer to Africa is still "waiting for time".