资讯 1 10 英文网 283 Cotton News 575432 NCMMS: reserve sales bring vigor to cotton industry 2017-11-08 15:12:17 yangfang
Home  >>  News  >>  Cotton News
NCMMS: reserve sales bring vigor to cotton industry
2017-11-01

NCMMS held a press conference on October 31 to announce the fruitful results achieved by the large-scale reserve destocking in 2016 and 2017. A group of industry-related medias presented the meeting.  

  

According to the report on “The assessment of reserve destocking on cotton industry”, China’s reserve sales that started in May 2016 has achieved significant success over the past two years. National cotton reserve stock is now approaching to a more reasonable level. Domestic cotton price maintained steady. The price spread narrowed substantially compared with a few years ago, which contribute to a stronger competitiveness and improved benefits for Chinese mills. 

  

Reserve destocking, according to the report, is an effective practice of macro control and an innovative system. In preparing the plan for the long term strategy, cotton-related departments developed a way to allow market to play the decisive role in resource allocation and provided a good chance for the government to play a better role. The new idea achieved a major breakthrough and innovation in establishing a system for a market-driven reserve selling. The new reserve policy played a decisive role in achieving a successful destocking of state reserves. 

  

The reserve selling closed the supply-demand gap in an effective way and ensured a steady supply for textile mills. Data shows that reserve sales totaled 2.65 mil tons in 2016, or 35% of the total mill use. Sales reached 3.22 mil tons in 2017, or 41% of the total use. The price spread between domestic and world market narrowed significantly from 2000 yuan plus to as low as 600. This leads to higher benefits for the mill sector and save much time and space for the upgrading and technical reform for Chinese mills. 

  

The market intelligence report released by NCMMS says that, while domestic market is short supplied and the gap exceeds 2 mil tons in 2017/18, the world market is extremely oversupplied. The macro environment will bring increased competition for Chinese textile industry and the policy direction will play a key role in price movement in the remaining months of 2017/18. 

  

The meeting is also the signing ceremony of “Smart cotton market monitoring”, a joint project of NCMMS and Beijing University of Post and Telecommunications.