A cotton yarn stringed the entire "cotton-cotton textile" industrial chain

Announcement on the official website of Zhengzhou Commodity Exchange: Cotton yarn futures have been approved by the China Securities Regulatory Commission and will soon be listed and traded. The announcement of the news made the industry in the cotton and cotton yarn industry happy. So, what impact will the cotton yarn futures market bring to the yarn market? What opportunities and challenges? Let us listen to the experts' analysis.

The cotton yarn trading variety to be opened by Zhengzhou Commodity Exchange will play an important role in improving China's cotton and cotton yarn price system, linking the upstream and downstream industrial chain and health transmission price information.

On July 18th, at the Focused Cotton Yarn Seminar of Zhengzhou's Future Building, Dr. Ji Guangpo, a well-known cotton and cotton yarn futures expert, said: The cotton yarn futures variety has been prepared for several years, which is almost a consensus that all participants should agree as early as possible. Introduced futures trading varieties.

The attitude of the textile industry to Zhengshang's cotton yarn futures is: hope, worry, and fear. Whether it is the upstream cotton enterprises, the downstream cotton yarn production enterprises and the downstream weaving enterprises, we are eagerly awaiting the early opening of cotton yarn futures. Cotton yarn futures will be able to string together the entire "fibertofabric" (fiber to fabric) industry chain. It can be said that a cotton yarn stringed up the entire "cotton-cotton textile" industrial chain.

A cotton yarn stringed the entire "cotton-cotton textile" industrial chain

We will talk about the topics related to the trading of cotton yarn futures from the following three aspects (if I have a misunderstanding, we will follow the rules announced by Zheng Shang):

1. Zhengzhou's cotton yarn futures varieties have the following characteristics:

1) This is the only cotton yarn futures variety in the world, and it is a variety with distinctive Chinese characteristics, which is likely to become the vane of the textile industry worldwide.

2) Expanding the scope and connotation of the concept of cotton-related enterprises;

3) The listing of cotton yarn futures is conducive to cotton mills to arrange production plans. The combination of low season and peak season: cotton and cotton yarn products are linked together, just like the “double body passenger liner” in the sea can resist greater wind and waves. It can not only smooth the fluctuation of upstream cotton futures prices, but also make the purchase of raw materials for downstream cotton mills an authoritative and transparent cotton price reference. Conducive to the implementation of sunshine procurement;

4) Zhengshang Institute has repeatedly sought the opinions of enterprises in the industry and revised the contract rules several times, striving to start from the characteristics of the cotton spinning industry, a series of innovative practices of factory warehouse delivery and credit warehouse receipts, helping the entity enterprises to falsify the reality. Steady operation.

5) Pure cotton carded ring spinning 32 yarns as the delivery variety, the generated standard warehouse receipts can be circulated and pledged, and the remaining yarn counts can also be delivered (combed, combed 40s, 50s), non-standard warehouse receipts, The use of self-lifting and discounting, this approach covers the production capacity of almost all cotton spinning factories;

6) In addition to the delivery of the self-owned warehouse of a large spinning factory that is eligible to apply for factory delivery, the transaction rules also allow third-party producers or traders to participate in the physical delivery of cotton yarn, which attracts small and medium-sized enterprises and traders. Passion for participation;

Second, the introduction of cotton yarn futures varieties, the reaction of all parties in the market is relatively positive, and our findings have been divided into several conclusions and shared with you:

1) Due to the opening of cotton yarn futures varieties, foreign investors have intentionally acquired the spinning enterprises in the Mainland (if the factory has the qualification for delivery warehouse, the acquisition conditions of foreign investors are more reasonable;

2) Small and medium-sized spinning mills are keen to use the futures market as a sales channel rather than a risk-taking measure. The risk awareness of small factories is still too weak and needs to be guided. According to our investigation, the majority of small and medium-sized cotton mills have the intention of delivery, but the downstream weaving factory is not willing to receive the goods. We estimate that the futures market is willing to accept the goods mainly by traders. The direction of futures market development needs to be subdivided into industry priorities;

3) Cotton yarn futures is the operation mode of factory delivery and credit warehouse receipts, which requires professional operation of the spot subsidiaries of professional futures companies;

5) It is important to note that goods that meet the delivery criteria do not necessarily meet the order requirements. This is determined by the characteristics of the textile enterprise orders (small batch, multi-variety, individualized), the weaving mills are used with the purchase, do not dare to hoard cotton yarn inventory, the requirements for the consistency of cotton yarn quality is very high. The linkage of large cotton trading company “cotton-cotton yarn” can solve this problem to some extent;

Third, cotton yarn futures can contribute to the realization of "cotton-textile" supply chain management

The core problem of the supply chain is the inventory problem. Using the futures means and tools, the virtual inventory management of raw materials (cotton) and the inventory management of finished products (cotton yarn) can truly serve the real enterprise. In this regard, Shanghai Yarn Bao's experience and successful model of building factories at home and abroad can be used for reference.

In short, the opening of cotton yarn futures is in line with the expectations of all aspects of the industrial chain. My own point of view is: there is better than no, early opening is better than late, and constant revision is continuously upgraded and optimized. The trading of cotton yarn futures varieties on the Zhengzhou Commodity Exchange will be launched soon, which is more beneficial to the healthy development of the industrial chain.