Before the new cotton market, the National Development and Reform Commission decided to increase the reserve cotton reserve 600,000 tons. China Cotton Association released the news on August 17 that China National Reserve Cotton Corporation has issued a circular on August 14, which will increase the circulation of 600,000 tons of cotton reserve. Among them, 500,000 tons of cotton will be stored and sold in 2008 with a bidding price of 12,600 yuan Yuan / ton. At the end of May, the NDRC had opened its doors to sell 1.52 million tons of cotton reserves. At present, this selling plan has been completed by 92%. "The 600,000-tonne sales volume is close to the one-month cotton consumption by the national textile enterprises, which is actually for the cotton supply before the new cotton market in mid-September." A senior China Cotton Association told reporters on August 17. Behind the market demand for cotton amplification, what kind of signal is passed? Textile companies warmer than expected? There is no cotton on the market? Wait a few months later, Hu Zhongkai has not yet participated in the State Reserve cotton selling auction. Since March, the textile industry has been appealing to the NDRC to open the gate to sell the State Reserve cotton to ease the cost pressure brought by the high cotton price. This call finally came to a paper announcement - On May 21, Announcement, will sell a total of 1.52 million tons of State Reserve cotton. Hu is the head of purchasing department of Guangdong Zhonghua Cotton Textile Industrial Co., Ltd. The small and medium-sized cotton spinning enterprise with 130,000 spindles needs to consume about 4,000 tons of cotton a month. Since March this year, he has been waiting for the government to sell Reserve cotton. "The price is too high." Hu has always hoped to control the cost of cotton with less than 13,000 yuan, but also expects the country to throw reserves, cotton spot prices will be some callback. The difference with his prediction is that since throwing reserve, 328 spot cotton prices jumped almost 300 yuan / ton monthly rise in the rate of 13200 yuan -13,500 yuan / ton spot price, compared with February this year When the rise of about 2,500 yuan per ton. In desperation, Hu gave up the auction, try to buy some relatively cheap cotton from Xinjiang cotton traders, import cotton traders, also began to find some cheaper cotton 4 as an alternative. Even so, the 13,000 / t cotton procurement costs, will also make this cotton enterprises into a loss, because "downstream cotton yarn prices are not so ideal." According to estimates, if the current purchase of cotton spot price, textile enterprises produce a ton of yarn, it will lose about 500 yuan. "Even considering Xinjiang cotton that has not yet arrived, the cotton on hand can only support the end of August." Hu said this also means that there is still about half a month before the new cotton is listed at the end of September, cotton is still used Landing. 600,000 tons of throwing storage plans introduced in this context. A local cotton company that has received a survey from the NDRC told reporters on August 17 that the government originally expected the first batch of 1.54 million tons of cotton sold by the State Reserve to meet the demand of textile enterprises before the new cotton market. According to a survey report made by China Cotton Reserve before the first batch of liquidation, as of the end of April, the domestic commercial cotton stockpile was about 1.1 million tons, about the amount of cotton used by the country's textile enterprises for nearly two months. "The market gap is bigger than expected." The above companies said there may have been some discrepancies in the survey statistics of China Cotton Reserve. In fact, the 1.52 million tons of reserve cotton selling has come to an end. As of August 14, the country's cotton bank sold about 1.4 million tons and the selling plan has been completed by 92%. "If you do not keep throwing storage, there will be no cotton flowing on the market." Shandong Lu Mubai Group said that the first batch of 1.5 million tons of tossed tundish has really been incorporated into the textile enterprises' warehouses, perhaps only half the other half, though it is still Most of the hands of traders have been sold, but not yet out of the library. According to the China Cotton Information Network monitoring, in July, the domestic cotton enterprises still have 900,000 tons of commercial inventory. Paul cotton farmers or textile enterprises? The reason for the market supply-demand gap being larger than expected lies in the better-than-expected recovery in the utilization rate of textile enterprises. The above-mentioned Lu Mian Group said that recent research shows that some of the larger cotton textile enterprises in Shandong Province have started to operate at full capacity. And just earlier this year, the industry has also heard that the largest cotton spinning enterprise in Shandong Weiqiao Venture Group, the production capacity of 6 million spindles suspended production of 2 million. Lin Jianhua, chief engineer of Guangzhou Guangfanglian Group, also said that the plant's operating rate has risen from 56% at the end of last year to 89% at present and the amount of cotton used has also increased from 200-300 tons a month to about 400 tons. "The order volume has increased compared with that of the previous year, although the order price has dropped." The survey found that the industry utilization rate has been raised from 40% -50% in the fourth quarter of last year to the current 70% after a round of phase-out reshuffling. Even 80%. The gradual release of production capacity has also been confirmed in the data. A report from the China Textile Industry Association on the operation of the textile industry in the first half of the year pointed out that the production of major products showed a clear upward trend. From January to June, the textile enterprises above designated size produced a total of 10,962,200 tons of yarns, an increase of 9.40% from the same period of last year; the cloth was up to 25.8 billion meters with an increase of 0.16% over the same period of last year; and the garments reached 10,644 million, an increase of 3.70% over the same period of last year. "Judging from the comprehensive evaluation of various indicators, the textile industry is in a crucial period of stabilization and recovery." Du Yuzhou, former vice minister of the textile industry and president of China National Textile and Apparel Council, once said in an interview with this newspaper in early August. "The increase in throwing throws actually reflects the thinking of the policy-makers in maintaining textile enterprises." Industry experts said on August 17 that as the new cotton market is imminent, the additional throw-in of 600,000 tonnes will suppress the price of new cotton. The government has tried to find a balance between 'protecting cotton farmers' and 'spinning and weaving enterprises.' "The newspaper was informed that according to the train of thought previously conveyed by the NDRC in local research, the government's policy on cotton will first protect the cotton farmers and secondly the textile enterprises. Experts predict that after the new 600,000 tons throwing storage, the market supply and demand will be balanced. It is estimated that the 2008 cotton year (September 2008-August 2009) will have a market demand of about 8.5 million tons. Affected by throwing storage, cotton prices will gradually decline, standard cotton new and old cotton access price may be 13000 yuan / ton in the vicinity. "This price is good for the peasants and the textile industry can accept it." Recently there are also some market rumors that in addition to 600,000 tons of throwing throws and reservoirs, the NDRC may issue 400,000 tons of cotton sliding allowance in the near future to open import channels to make up the market demand. By convention, in addition to issuing a quota of about 890,000 tons at the beginning of each year, the government will issue part of the quota for sliding allowances as a supplement. In 2008, the NDRC once issued a sliding allowance of 2.6 million tons, but the slump in the textile industry led to a sharp drop in demand for cotton. In 2009, the NDRC so far released some allowances. The Ministry of Agriculture on August 17 monitoring information released in July shows that the same level of imported cotton CIF (tariff quotas) than domestic cotton cheaper about 1,400 yuan per ton.