The Specific Impact Of India'S Cotton Export Ban

The India government announced in March 5th that it would prohibit the export of cotton products with tax numbers of 5201 and 5203, including export orders registered with its government.

According to India customers, they were ready to ship at the port the same day.

According to Chinese customs statistics, as of January, China's imports of India cotton reached 809 thousand tons this year, and China's import data in February will be released around 10 this month, and it is expected to remain at around 150 thousand tons.

Therefore, the late India cotton contract for unshipped cotton may be at 300 thousand tons of -35 million tons.

The specific effects of India cotton export ban are briefly summarized as follows:

1, disrupt the domestic sector.

2, 300 thousand tons of -35 million tons, probably half the amount of domestic textile enterprises half a month, the impact of which needs to be comprehensive assessment and trade-offs, after short-term fluctuations, we need to calm analysis.

3, the excessive export of cotton in India has attracted the attention of India.

India's policy background is more based on lobbying in the domestic textile industry to ensure the demand of domestic textile enterprises for cotton consumption.

The major problem that has been troubling China's textile enterprises is that the cost difference of spinning cotton is not only solved, but may be deepened. The competitiveness of downstream export and the ability to receive orders will also drop.

4, a problem that has been hyped up by the domestic market recently is that the country is not allowed to issue quotas, even if the contracted cotton is difficult to declare.

Therefore, at present, India cotton is forbidden to export, and India cotton can not enter the domestic market. According to common sense, the market has already digested ahead of time that it is difficult to get the quota, and the impact is discounted.

5, China's current port inventory of cotton itself has been high, it is reported that the maintenance of about 1000000 tons, not including the upcoming shipment of cotton to Hong Kong, market resources are not short.

6, China's cotton reserves are currently up to 2 million 700 thousand tons, plus imported cotton, which is expected to reach 4 million tons by the end of March.

Considering the continued increase in storage and storage in the next year, the latter will certainly be released through dumping and storage, and the large supply and demand pattern is still relatively loose.

7, the export of US cotton has been over fulfilled this year, and the price is more meaningful. Under the India cotton policy export ban, a new deal with India cotton related contracts may reduce the current widespread phenomenon of cotton merchants breaking the contract due to price declines.

Affected by the news of India's ban on cotton exports, Zheng cotton rose sharply.

On the whole, India cotton export ban as a sudden policy, it is possible to end the cotton at home and abroad ahead of schedule.