Explore the impact of the new national standard on the cotton industry

On September 1, 2013, China began to implement the new cotton standard GB1103-2012 "Cotton fine cotton" (hereinafter referred to as the new standard), and the 2013 cotton temporary storage and storage policy launched on September 9 was implemented in accordance with the new standard. According to the National Development and Reform Commission, the temporary cotton collection and storage scope for 2013 is: color grade white cotton grade 4 and above, light spot stained cotton grade 2 and above; length grade 27 mm and above; micronaire A, B and C grade C2 Gear; breaking ratio strength difference gear and above; length uniformity low gear and above; rolling mill quality mid-range and above. The cotton spread rate is implemented in accordance with the "Notice on Adjusting the" Cotton Quality Spread Table of China Cotton Association "issued by the China Cotton Association on August 30.

Cotton quality declines and rises

Price increase

From the end of July to early August, rain continued to appear in most cotton producing areas, which reduced cotton production. However, recent interviews found that the fine weather in the middle and late August has improved the quality of cotton everywhere.

Due to the fine weather in Henan Province, the cotton planting in various producing areas speeded up. Zhengzhou, Xinxiang and other places picked 75-100 kg / mu of seed cotton. The quality of the seed cotton was mainly white cotton grades 2 and 3, with a small amount of lightly stained cotton grade 2. Henan Province suffered from floods this year, and some cotton fields suffered severe reductions in production. However, the weather improved in the later period, and the new cotton was white, velvety, and mature.

Cotton farmers in Sheyang, Jiangsu also generally reported that the weather continued to be hot and dry in late August this year. Although it had some adverse effects on the later growth of cotton, especially on raising the peach and achieving the autumn peach capping, it was very beneficial to Control of cotton growth. The microclimate in the field even promoted the cracking and flocculation of cotton bolls, and the moldy blackened rotten peaches were significantly less than in the previous year. Judging from the quality of cotton that has been picked at present, it completely meets the new standard white cotton level 4 level. As long as it is sorted slightly, some of them can still meet the requirements of white cotton level 3.

Due to the good quality of cotton and the reduction of cotton planting area, cotton farmers are unwilling to sell, and the price of cotton has increased. At present, the price in most regions is around 8.4 yuan / kg. Ma Junkai, deputy secretary-general of the Dezhou Cotton Association, said that the cotton collection and storage in Texas has begun. The price is 8.4 yuan / kg, which is about 0.15 yuan / kg higher than the same period of last year. They are mixed and the classification is not obvious. Regarding the cotton farmers' unfortunate sales, Ma Junkai has other views. He believes that this is also related to sales habits. "Cotton farmers usually pick up all the cotton and then sell it. It will be more troublesome to sell a portion of it, and some cotton farmers who need money will choose to ship it now."

Stricter quality requirements

Processing enterprises under pressure

As this year is the first year of the implementation of the new cotton standard, and the announcement issued by China Reserve Cotton Management Corporation stated that the current collection and storage rules will increase the deposit deposit from 300 yuan / ton to 500 yuan / ton, and clarify the company's Depositing cotton for life. The new year's collection and storage will be carried out in accordance with the increased color level in the new national standard. In particular, there are clear regulations on rolling mill quality, length uniformity, fracture ratio, and heterogeneous fibers. Textile companies generally believe that this collection and storage policy is formulated in accordance with all strict principles and in accordance with the new national standard. It will play a standard and guiding role for processing enterprises. The quality of reserved cotton is expected to improve this year.

At the same time, under the strict collection and storage standards and strict regulations on the enterprises that deliver and deposit, the current collection and storage are heavy and not heavy, which has really put a lot of pressure on cotton processing enterprises, making it more difficult for enterprises to deposit and deposit. A person in charge of a cotton processing enterprise in Hunan said that at present, the enterprise is more cautious in purchasing cotton, and strives to control the quality when collecting and storing, to prevent future cotton quality problems and loss of profits.

According to industry insiders, the cotton mills currently opening scales are trying to acquire, process and even submit inspections, and the willingness to seize resources is obvious, but the actual profit is not ideal. Last year cottons above level 4 were included in the scope of storage, but this year will be above 3.5 levels. Therefore, the quality problems that occurred during the storage and storage of last year are expected to be avoided this year.

In terms of reserve cotton repayment, this year's collection and storage will take a one-time payment method, and the deposit will be increased to 500 yuan / ton. This is bound to affect the overall acquisition and operation of the ginnery with insufficient funds as a whole. Some people in the industry believe that the probability of irrational phenomena such as large-scale rush sales will be greatly reduced, cotton enterprises will strictly control costs, and small enterprises may cooperate with large enterprises due to insufficient funds. In addition, Xinjiang's collection and storage will implement limited-time limited auctions based on the inspection volume of processing enterprises and the average daily acceptance capacity of the storage warehouse.

New national standard requirements are detailed

Cost of cotton is expected to fall

This year, the collection and storage standards will be implemented in accordance with the new cotton standards. This is a good thing for cotton companies. Its clear regulations on mill quality, length uniformity, break ratio, and heterogeneous fibers allow textile cotton companies to use it. A lot of trouble. During the interview, I learned that under the original cotton grading standard, the cotton used by textile companies usually has its own set of standards. No matter how the cotton is purchased, the company reassesses it according to its own standards. Purchasing is carried out according to the grade standards set by the state, and the cotton distribution uses self-defined standards that focus on physical indicators. The new cotton standard is refined to 4 color types and 13 color levels, which is very close to the company's own "cotton distribution standard", which makes the standards used by enterprises in procurement and cotton distribution consistent, which can completely resolve the use of cotton distribution in enterprises. The problem of non-uniformity with the purchase price, thereby reducing the inspection of cotton and reducing the cost of cotton.

Some analysts said, "This year is the first implementation of the new national cotton standard. Cotton inspection will be more detailed and strict. If human factors are excluded, the amount of cotton that meets the storage and storage standards will be less than last year. It is estimated that 5 million tons can be stored and stored. It accounts for about 80% of cotton production. "According to data, in 2012 China collected and stored 6.506 million tons of cotton, and the cotton output was calculated at 7 million tons. The input reserves accounted for 93% of cotton production. The market's cotton circulation in 2012 was very high. Less, and due to the implementation of the new cotton standards in 2013/2014, the collection and reserve will not be too large, the cotton circulating in the market will increase, for cotton companies to choose more.

At present, the domestic cotton market is dominated by sporadic collection and storage. The person in charge of an enterprise in Xinxiang said that there are three main concerns: First, the detailed rules for collection and storage require the company to be responsible for the quality of cotton for life, and the enterprise is under great pressure; second, the detailed rules for the collection and storage are acquired in accordance with the new national standard. The connection between inspection and public inspection is difficult to grasp. Third, there is no suspense in the reduction of seed cotton production this year, and the overcapacity of 400-type enterprises will cause the battle for resources to repeat. Enterprises are more worried about the prospect of acquisition. Industry insiders expect that most cotton companies will not start scale acquisitions until the end of September, a slight delay from last year.