Weekly Report: China Cotton Association Warned on Industry Production Security

Recently, several catastrophic accidents caused unalterable life and property losses to our country. General Offices of the Central Committee and the State Council published urgent notices on security management on workplaces and public assembles, followed by the national working security teleconference held by the State Council.

The seed cotton purchase nationwide came to the final stage with relatively slow pace due to sluggish demand. At the same time, some cotton warehouses are also the keeper of state reserve cotton and thus take serious security responsibility. In response of the rising risks in the forthcoming Spring Festival, China Cotton Association warned its member companies to organize security inspection according to the urgent notices sent by General Offices of the Central Committee and the State Council. Attentions shall be put on precaution and risk management on cotton production, warehousing and transportation; at the same time emergency plans and fire safety responsibility system shall be made.

Last week, (5th-9th January), domestic lint spot price changed slightly. On 9th CC Index 3128B settled at 13,602 Yuan/ton, 3 Yuan down over the week. Since the new year, all the gins under supervision in Xinjiang had stopped buying seed cotton and focused on lint sales; most arranged visits to textile mills to promote their lint. Seed cotton purchase in Yellow River, Yangtze regions came to the final phase with reduced quality, quantity and price. According to the survey of CCA cotton processing industry branch, the only three provinces of Hebei, Shandong and Tianjin in Yellow River regions with several supervised ginners in market reported average buying price of 6.24 Yuan/kilo for 3128 equivalent seed cotton, 0.04 Yuan down over the week. In Yangtze region, that price is 6.08 Yuan/kilo, 0.02 Yuan down over the week.