Dumping Low Prices Affect The Price Of Big Cotton And Open Down Space.

In the near future, the market rumors that China will throw the store again, and that the price of dumping and storage is likely to decrease substantially. This may be the inducement of the sharp decline in the price of China's cotton futures in the past month.

U.S.A

According to the latest analysis of the company,

The volume has been greatly reduced, so China's dumping price will not bring a direct impact on the market. The impact of low price dumping on China's cotton prices may be reflected in yarn.

As China's cotton prices fall, China

The competitiveness of the plant will be restored. In the end, the advantages of imported yarn will gradually weaken. Vietnam, India and Pakistan may feel the pressure brought by the weakening of China's cotton yarn import demand, and the domestic cotton consumption will also decrease.

Whether these reduced consumption is driven by domestic consumption (India and Pakistan) or export consumption (Vietnam), the decrease in China's cotton yarn imports will lead to an increase in cotton stocks outside China, and its severity will determine how much pressure the international cotton price will face.

On the basis of the fundamentals, the US Department of agriculture forecast sixth consecutive reductions in global cotton production and consumption in February.

Global production was reduced by 172 thousand packages to 101 million 400 thousand packages, and consumption was reduced from 1 million 300 thousand to 109 million 600 thousand packages.

Since the first forecast issued in May last year, global cotton production in 2015/16 has been reduced by 9 million 900 thousand packages, a decrease of 8.9%, and the consumption volume has been reduced by 5 million 700 thousand packages, a decrease of 4.9%.

The forecast sharply reduced cotton consumption in China, India, Pakistan and Brazil, and the world's cotton imports also dropped to 35 million 100 thousand packs, the lowest level since 2008/09, mainly due to the sharp decline in China's import demand.

According to the forecast, China's cotton imports dropped by 500 thousand to 5 million bales.

Within four years, China's cotton import volume has been reduced by 19 million 500 thousand packages, which is equivalent to the sum of cotton production in the United States, West Africa and Australia this year.

In addition, the import volume of Pakistan and India also decreased by 400 thousand and 100 thousand packages respectively.

Meanwhile, the US cotton export volume has been cut by 500 thousand packages, and cotton exports in Brazil, India and Pakistan have been cut by 100 thousand packages.

After this adjustment, the end of this year's global cotton inventories decreased by 1 million 200 thousand to 104 million 100 thousand bales, and inventories outside China increased, thus putting pressure on the market.