Domestic cotton production decreased by 3.5%

According to the national cotton production data released by the National Bureau of statistics, the national cotton production in 2019 was 5.889 million tons, a decrease of 213,000 tons or 3.5% compared with 2018.

Among them, Xinjiang's cotton output was 5.02 million tons, a decrease of 108,000 tons or 2.1% over the previous year.

The maximum spot price difference of lint is 3,114RMB/ton

According to statistics of SunSirs, the maximum price difference of average price of domestic spot market in 2019 is 3,114RMB/ton, down 19.83%. The average price of cotton spot market on October 8 was 12,588RMB/ton, a new low since May 27, 2016.

Cotton import (January - October) rose 30.16% year on year

From January to October 2019, China imported 1.5905 million tons of cotton, a year-on-year increase of 30.16%.

Cotton yarn (January - October) export decreased by 7.10% year on year

From January to October 2019, China imported 1622300 tons of cotton yarn, a year-on-year decrease of 7.10%; and exported 318400 tons, a year-on-year decrease of 7.35%.

Cotton import and export drop (January - October)

From January to October 2019, China has imported 235 million meters of cotton cloth, down 22.09% year on year, and exported 6.609 billion meters, down 7.29% year on year.

Average price of reserve cotton turnover in 2019: 12,633RMB/ton (5.5-9.30)

In 2019, the average transaction price of central reserve cotton rotation is 12633RMB/ton, which is converted into standard grade (3128B) price of 13,902RMB/ton;

The highest price is 15,930RMB/ton, and the lowest price is 10,750RMB/ton;

During the period of reserve cotton rotation, 116,200 tons of reserve cotton have been listed for sale;

Among them, 57,00t of Xinjiang cotton was listed, 592,000t of real estate cotton was listed;

The average transaction price of Xinjiang cotton is 12,794RMB/ton, with an average increase of 707RMB/ton;

The average transaction price of real estate cotton is 12,444RMB/ton, with an average increase of 425RMB/ton.

Pakistan's export of cotton, cotton yarn and grey cloth to China achieves ‘zero tariff’

On April 28, China and Pakistan signed the protocol between the government of the people's Republic of China and the government of the Islamic Republic of Pakistan on Amending the free trade agreement, which entered into force on December 1, 2019. Pakistan's cotton, cotton yarn, grey cloth and other exports to China have finally achieved ‘zero tariff’.

After six years, the material reserve bureau started to receive and store Xinjiang cotton

On November 14, the State Food and materials Reserve Bureau issued a notice that some new Xinjiang cotton was put into the round. The total amount of this round was 500,000 tons, and about 7,000 tons were listed for bidding every day. It is a national legal day from December 2 to March 31, 2020.

About tariff quota of cotton import

On April 12, 2018, the national development and Reform Commission issued a notice on the application for the import quota of preferential tariff rate in addition to the tariff quota of cotton in 2019. The amount of cotton import sliding tax quota is 800,000 tons, all of which are non-state trade quotas, and the application time is April 15-29, 2019.

In 2020, the total import tariff quota of cotton is 894000 tons, of which 33% is state-owned trade quota.

Year on year increase in global cotton ending inventory

According to the global production and demand forecast released by the U.S. Department of agriculture in December, in 2019 and 2020, the global ending inventory increased by 600,000 bags year on year, to 80.3 million bags.

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