2015 Chinese cotton market outlook
——Li ZhenhuaSenior Analyst, CCFGroup
2015-08-06 16:37:43
Firstly, he pointed out price and policy are major factors affecting cotton supply and demand. Price is decided by supply and demand; Supply and demand is affected by price. Supply and demand of cotton is distorted under the intervention of policy. The obvious change from policy-dominated market to marketization is reflected in the intervention for demand-the cotton reserve is removed. Even when the reserve in the rotation policy is implemented, it depends on the effect of cotton auction, so the actual intervention is extremely limited. Thus, the influence of market demand to supply/demand mechanism becomes more apparent.
Then he analyzed cotton supply and demand from planting area, cotton import, imported, cotton yarn volume, substitute between cotton and chemical fiber, elastic demand.