Influence of imported cotton quota management system on domestic cotton price

On the first trading day of 2012, the domestic Zheng Cotton did not bother with the strong daily limit of ICE cotton, and fell slightly after opening higher. The main 1205 contract oscillated around 20,820 yuan/ton.

The distribution of domestic tariffs on imported cotton was the main reason for the discrepant performance of cotton in the domestic and foreign markets.

Domestic cotton imports implement a quota management system. There are two types of imported cotton quotas:

One is the tariff quota, and the import tariff rate is 1%. Currently, the annual issuance volume is 894,000 tons. It is issued at the beginning of the annual calendar year (that is, after New Year's Day). The effective period of the quota can be extended up to the end of February of the next year. ;

The other is the quotas outside the customs. At present, the quotas outside the tariffs implement a sliding tax system. According to the 2012 sliding tax formula announced by the Ministry of Finance, the import tariff rate of cotton using sliding tariff quotas is slightly higher than 1%, and the imported cotton price For a 4% to 40% sliding tariff rate that is less than 100 cents, the lower the imported cotton price, the higher the sliding tax rate. The quantity of slip tax issuance is determined according to market conditions. The effective use period of the slip tax quota is the end of the year and expires.

Imported cotton quotas are distributed to enterprises free of charge. The amount of each company's distribution has a certain relationship with the size of the company and the amount of cotton imported each year.

According to the provisions of national policies, import cotton quotas are not allowed to buy and sell, but driven by market demand, there is still an invisible market for imported cotton quotas. The price of imported cotton quotas comprehensively reflects the price difference between the domestic and foreign cotton market and the price of cotton. Market demand situation.

At the end of 2011, due to the difference between domestic and foreign cotton prices approaching 3,000 yuan/ton, the domestic cotton market oscillated upwards under the support of storage and storage. The huge market spread and expectations for the cotton market outlook have resulted in the import quota of cotton being "a ticket is hard to come by" and the price has risen sharply. Rising, 1% of the tariff quota market price was above 2,000 yuan/ton.

The continuous increase in the market price of imported cotton quotas has filled the huge price gap between internal and external disks, and has also caused certain difficulties in internal and external disk arbitrage.

The distribution form and usage rules of imported cotton quotas have led to each quota issue in the current year creating an opportunity for reducing the spread of domestic and foreign cotton discs to create opportunities for internal and external disk arbitrage.

After New Year's Day, the tariff quotas for imported cotton in 2012 will be distributed to some enterprises in a free way. Low-priced imported cotton is expected to enter the domestic market in batches and will have a negative impact on domestic cotton prices in the short term. It is not difficult to explain why cotton is continuously used. The day rose while domestic Zheng cotton continued to oscillate.

From a fundamental point of view, the phased support of the purchasing and storage policy for the cotton market is conducive to stabilizing the cotton price, and it will take time for the adjustment of the cotton spinning industry chain. However, the large internal and external price difference will weaken the competitive advantage of the downstream textile enterprises and may cause the downstream Enterprises increase the import of low-cost cotton and cotton yarns.

The quantity and rhythm of the distribution of imported cotton quotas have become a key factor affecting domestic cotton prices in a certain period of time.

If the slip tax quota is issued earlier and faster, Zheng Cotton will face greater spot pressure, whereas the protection cotton price will continue to oscillate.