Imbalance in cotton market Downstream in China cotton price

Since 2015, China has been faced with continuous price down in cotton industry. The stocking market has been tiring in cotton productivity, quality and benefits even with the push of low cotton price.
Chinese government has implemented subsidy policy for Xinjiang cotton and mainland cotton, which however has little help with heightening the benefit of cotton farmers. The passion for cotton planting may not easily be improved because of incomplete subsidy policy and weak efficiency.111
It is reported that the current declining cotton price makes cotton manufacturers much loss in benefits. Many companies have planed to purchase materials after getting confirmed orders without stocking preparation in avoid of any risks. At present, 65% enterprisers basically have no cotton in stock, while 25% enterprisers have about 100ton stock and only 10% enterprisers have 300-400 ton cotton in stock.
Totally speaking, China has still on the way to solve the contradiction of market supply and structure modification. The quotation project should be operated and located according the whole cotton inventory. The cotton price can be maintained for a while.But for the limited customized requirements in cotton, a big gap will be in high-level and low-level cotton buying and sales.