2016 cotton spinning industry development review 2017 situation outlook

At the beginning of the new year, everything shows a new look and also holds new hopes. On the occasion of the new year, Ye Haochun, vice president of the China Cotton Textile Industry Association, introduced the industry development, industry hotspot issues and key tasks in 2017 over the past year.

TAweekly: What are the significant characteristics of the development of the cotton textile industry in 2016?

Ye Chunchun: In 2016, the cotton textile industry as a whole maintained a stable operation. Although the fluctuation of cotton raw materials has an adverse impact on the development of the industry, from the market situation, the company's response capacity is strengthening. In the survey, the enterprises generally reflect that the benefits are better than 2015.

A notable feature of the development of the industry is that large-scale enterprises have good benefits, while small and medium-sized enterprises with single products and weak market ability are facing difficulties, and there are many shutdowns. Industry development is concentrating on large and advantageous companies.

TAweekly: Textile companies have turned their eyes to foreign countries for various reasons. What new trends have cotton textile companies “going out” in the past year?

Ye Chunchun: From the current situation, the pace of “going out” of cotton textile enterprises is gradually slowing down. With the TPP lockout, the motivation for cotton textile enterprises to “go out” is also weakening. At present, some companies have turned their eyes to Africa and Central America, but they are not going to become a trend. Africa is a hotspot for people to talk about. Its electricity and labor costs have advantages. However, cotton spinning enterprises should also consider the factors of cotton resources. The cotton planting technology in Africa is backward and the output is not high. Therefore, enterprises will not blindly “go out”.

TAweekly: What is the industry development situation in 2017?

Ye Chunchun: On the whole, the cotton textile industry will continue to develop steadily in 2017, but there are also many uncertainties. First, the macro economy will not be significantly improved. Secondly, the depreciation of the renminbi is conducive to the export of cotton fabrics. However, it remains to be seen whether the textile trade policy will change after the new US president takes office. From the current situation, Japan and the United States may have tariffs for China. Regulations such as technology have been introduced, so the export situation is not optimistic.

TAweekly: What is the new year cotton situation?

Ye Chunchun: From the perspective of domestic planting area, due to the orientation of the state subsidy policy, the enthusiasm of cotton planting in the Mainland is affected, the cotton in the mainland will be less and less, and the cotton in Xinjiang is relatively stable. The country has announced a new year's plan to dump reserves, and the reserves should be equivalent to last year.

However, enterprises are more concerned about the quality of cotton. Most of the cotton thrown this year should be stored and stored in 2014. The phenomenon of mixed grade is serious. Whether the cotton detected can meet the demand of cotton spinning enterprises is still not conclusive. If cotton There are many quality problems, and the amount of daily dumping can not meet the demand, and the market will fluctuate. In order to cope with the impact of dumping, the China Cotton Textile Industry Association will promptly listen to the company's demands, report to the relevant state departments, guide the market, and ensure that enterprises use cotton.

TAweekly: In recent years, Xinjiang is a hot spot for investment in cotton textile enterprises. What opportunities are there in the future?

Ye Chunchun: From the policy of Xinjiang, the preferential policies for investment in cotton textile enterprises have been introduced. The focus of the next policy will focus on downstream fabrics and clothing. The ultimate goal of all policies is to solve the employment problem in Xinjiang. At present, cotton spinning enterprises invest all in advanced spinning equipment, and clothing can solve more employment problems.

TAweekly: Cotton yarn futures will be listed in the first half of this year. What does this mean for companies?

Ye Chunchun: The market for cotton yarn futures is good for spinning companies, which is also an important manifestation of marketization. With the reduction of the price difference between domestic and foreign cotton, the import volume of cotton yarns in India and Pakistan is also decreasing. This year, Xinjiang cotton yarn will make up for the reduction of imported yarn. The futures market is not only affected by the domestic market, but also related to imported yarn.

Cotton yarn futures are conducive to the hedging of spinning enterprises, especially for SMEs, and can play a role in protecting yarn prices. However, futures is a financial product, and there will be market speculation. Therefore, enterprises will have a process of gradual understanding. Be cautious and use this platform. In general, cotton yarns are highly market-oriented, with less policy intervention and will be more active in the future.

TAweekly: What kind of work does the China Cotton Association focus on in the new year?

Ye Chunchun: For enterprises, the most concerned is cotton raw materials. For this reason, the association will focus on the situation of cotton dumping, and hold an analysis meeting in time to reflect the company's demands to the state. In addition, the association will guide enterprises to adjust and upgrade around the cotton textile industry upgrade, enhance the level of intelligence, and implement the “three products” strategy.