Foreword
Looking back on 2019, faced with various difficulties such as cotton price fluctuations, market shrinkage, reduced orders, and rising labor costs, my country’s cotton textile enterprises persisted in improving their internal strength, accelerating the pace of transformation and upgrading, and changing the past The backward image of inefficiency, by continuously improving the digitalization and intelligence level of technical equipment, promotes industrial transformation and upgrading, and continues to move forward in the direction of sustainable development. At the same time, industry policies are generally improving. The destocking of cotton reserves and the issuance of additional quotas have ensured the cotton demand of small and medium-sized enterprises. Appropriate rotation of Xinjiang cotton has stabilized market cotton prices. Industry associations and local governments actively support the transformation and upgrading of enterprises and enhance their autonomy. Innovation capabilities have effectively promoted the overall high-quality development of the cotton textile industry.
News Review: Cotton production fell by 3.5%
In 2019, the national cotton planting area was 3.3392 million hectares, a decrease of 15,200 hectares or 0.5% compared with 2018. In 2019, the national cotton output was 5.889 million tons, a decrease of 213,000 tons or 3.5% compared with 2018. Among them, Xinjiang’s cotton output is 5.002 million tons, accounting for 84.9% of the country’s total. The national cotton output per unit area was 1,763.7 kg/hectare, a decrease of 55.6 kg/hectare or 3.1% compared with 2018.
●Comment: Cotton planting is concentrated in Xinjiang
From the overall planting area, the national cotton planting area in 2019 was 3.3392 million hectares, less than in 2018 15,200 hectares, a decrease of 0.5%.
The cotton mechanical harvesting efficiency in Xinjiang is high.
Looking at different regions, cotton planting is further concentrated in Xinjiang cotton areas, which are advantageous areas. The cotton planting area in Xinjiang, my country’s largest cotton-producing region, increased by 49,200 hectares compared with 2018, an increase of 2%, accounting for 76.1% of the country’s total, an increase of 1.8 percentage points from the previous year. In 2019, Xinjiang’s cotton output accounted for 84.9% of the country’s total, an increase of 1.2 percentage points from the previous year. This is mainly due to the country’s implementation of a cotton target price subsidy policy for Xinjiang, which has mobilized the enthusiasm of cotton farmers, resulting in a steady increase in the cotton planting area in Xinjiang.
Affected by factors such as planting efficiency and agricultural structure adjustment, the cotton planting area in other cotton areas decreased by 64,400 hectares compared with 2018, a decrease of 7.5%. Among them, the planting area of cotton areas in the Yangtze River Basin decreased by 32,400 hectares compared with 2018, a decrease of 8.7%. The planting area of cotton areas in the Yellow River Basin decreased by 28,100 hectares compared with 2018, a decrease of 6.2%.
The national cotton yield declined in 2019, reaching 1763.7 kg/ha, a decrease of 55.6 kg/ha or 3.1% from the previous year. The decline in yields is mainly due to the impact of the disastrous climate. During the critical period of cotton growth, natural disasters such as sandstorms, high temperatures, hail, and low-temperature freezing damage occur from time to time in major cotton-producing areas such as Xinjiang, Hebei, Jiangxi, Shandong, and Hubei, which have a certain impact on cotton yields.
News review: Cotton import quota is increased by 800,000 tons
On April 12, the National Development and Reform Commission issued Announcement on matters related to the application for import quotas at preferential tariff rates outside cotton tariff quotas in 2019. The announcement shows that the quantity of cotton import sliding tax quota is 800,000 tons, all of which are non-state trade quotas.
●Comment: Reduce raw material costs to ensure cotton demand
The implementation of the cotton quota increase policy in 2019 has brought “timely rain” to textile companies using imported cotton and solved the problem It is urgent for enterprises to use cotton. This is especially true for domestic textile and apparel export companies targeting the global mid-to-high-end market. In recent years, export orders for overseas customers specifying the use of American Pima cotton, Australian fine cotton, and Egyptian cotton have increased year by year. The timely issuance of cotton sliding quasi-tax quotas will help companies stabilize overseas high-end strategic customers, thereby seizing overseas mid- to high-end market.
At the same time, the additional issuance of quotas will also help enterprises reduce cotton costs. Currently, raw material costs account for a large proportion of production costs, and imported cotton has a clear price advantage over domestic cotton. Textile companies purchasing foreign cotton will help achieve fair competition with spinning mills in Southeast Asian countries.
Industry experts believe that it is a very wise approach to use a quota system to adjust the raw material supply gap in the domestic textile industry, allowing cost-effective foreign raw materials to be used by domestic enterprises. The issuance of cotton import sliding tax quotas has made the price difference between domestic and foreign cotton smaller and smaller.
In addition, long-term stability of cotton policy will help maintain the sustainable development of the textile and apparel industry. After years of development, my country’s textile and apparel industry has connected the upstream and downstream of the industrial chain, formed a competitive advantage, and with strong adaptability, has met the rapid response and quality requirements of international procurement. More and more excellent textile and apparel companies have completed the development process of full industry chain production companies through continuous transformation and upgrading. In the environment of globalized resource allocation, effective resource allocation in the market for cotton and other raw materials will be conducive to stabilizing the domestic production and operation of cotton spinning enterprises and expanding reproduction.
News review: 500,000 tons of cotton reserves were rolled in
On November 14, the National Grain The Material Reserves Bureau and the Ministry of Finance issued an announcement: In order to strengthen the management of central cotton reserves, further optimize the reserve structure, and improve the quality of reserves, it was decided to rotate in about 500,000 tons of Xinjiang cotton. The rotation period will be from December 2, 2019 to March 2020. National statutory working day on the 31st of the month.
●Comment: Stable supply and demand supports the “protective umbrella” of the cotton market
Since the destocking of cotton reserves has been completed, the market has raised concerns about cotton reserves. wheel/01/02/20200102132815977012.png”>
On-site exhibits at the 2019 Autumn and Winter Yarn Exhibition.
The 2019 China International Textile Yarn Exhibition is not only for various companies It is a testing ground for new products and a vane that reflects market trends. At this year’s yarn show, the outstanding feature is that sustainable development starts from the source of the industry and runs through the entire textile industry chain.
With the continuous rise of new forces, consumers are increasingly favoring high-quality products that are durable, more environmentally friendly, and pay more attention to the production process of a finished product. They regard fast fashion as unsustainable products. Taking green sustainability as the new fashion attitude.
At the exhibition, regenerated cellulose fibers and various recycling products that highlight green, environmental protection and sustainable development have laid the foundation for the green textile industry. A perfect closed loop. In the face of the introduction of more stringent environmental regulations and changes in consumption concepts, many textile companies have exhibited recycled yarns that give fabric waste a new life, and the production process also adopts efficient and environmentally friendly dyeing processes.</p
