Chinese government policy will create a stable environment for the textile industry

Chinese textile industry insiders pointed out that China's industrial policy will continue to play an important regulatory role in 2012, will effectively prevent cotton prices from soaring and plummeting.

In the current year, the total purchase of reserve cotton is expected to exceed 3 million tons, which is equivalent to half of the annual cotton production of this cotton.

The cotton import quota policy will also play an increasingly important role in adjusting domestic cotton prices.

This year's cotton harvest has severely weighed on this year's cotton prices. It is generally expected that the cotton acreage will be reduced by 9% in 2012-13.

The demand for raw cotton in 2012 is expected to reach approximately 9.5 million tons. In the context of slow growth or even a slight decline in the export of textile and apparel, and the increasing domestic sales potential of textiles and apparel, the domestic textile industry will maintain a stable trend.

Domestic cotton prices are significantly higher than those currently imported, and the price gap is as high as 1.15. With the promotion of domestic cotton prices, imported cotton prices began to rise.