The first batch of central reserve cotton in 2021 has been released. According to the requirements of relevant national departments, in order to better meet the cotton needs of cotton spinning enterprises, China Cotton Reserve Management Co., Ltd. will organize the release of the second batch of central reserve cotton in 2021. The relevant matters are now announced as follows:
1. Delivery arrangements
(1) Time. It will be launched from November 10, 2021.
(2) Quantity. The total amount put in is 600,000 tons. The daily delivery volume is reasonably arranged based on market conditions and other circumstances.
(3) Method. It is sold through public bidding in the national cotton trading market.
(4) Price. The bottom price for listed sales is determined based on market dynamics. In principle, it is linked to the spot price of cotton at home and abroad, and is adjusted once a week. (See the attachment for specific calculation formulas)
(5) Notarization inspection. The China Fiber Quality Monitoring Center organizes notarized inspection based on 10% sampling of the released cotton reserves.
2. Related matters
(1) Implementation rules for placement , transaction details and inspection rules shall be implemented in accordance with the relevant measures for the release of the first batch of central reserve cotton in 2021.
(2) Only textile cotton enterprises can participate in the bidding for cotton reserves. If non-textile cotton enterprises participate in bidding in violation of regulations, the results will be invalid and their qualifications to participate in reserve cotton transactions in the future will be cancelled. The reserve cotton purchased by the textile cotton enterprise is limited to the enterprise’s own use (the unified social credit code or tax registration number of the bidding enterprise and the textile cotton enterprise must be the same) and may not be resold. Otherwise, once discovered, their qualifications to participate in reserve cotton transactions in the future will be cancelled.
(3) During the launch period, according to the domestic and international cotton market situation and national macro-control and other needs, necessary adjustments will be made to the launch arrangement, or the central reserve cotton will be further increased, which will be announced separately at that time. notify.
This is an announcement.
Attachment: Calculation formula for the sales floor price of central reserve cotton in 2021
China Cotton Reserve Management Co., Ltd.
November 9, 2021
Attachment
The 2021 central reserve cotton sales floor price calculation formula
The floor price of central reserve cotton is adjusted and determined once a week. The specific calculation formula is as follows:
Xinjiang and imports this week The reserve cotton sales floor price (discounted to standard grade 3128B) = the arithmetic mean of the domestic market cotton spot price index of the previous week × weight of 50% + the arithmetic mean of the international market cotton spot price index of the previous week × weight of 50%.
This week’s floor price of real estate reserve cotton for sale (discounted to standard grade 3128B) = the arithmetic mean of the cotton spot price index in the international market last week.
Among them:
1. Domestic market cotton spot price index = [China cotton price index (3128B varieties) + national cotton price Index (3128B variety)] ÷ 2;
2. International market cotton spot price index = Kotruk A index (in US dollars/ton) × exchange rate × (1 + tariff 1%) The benchmark exchange rate of foreign currencies against the RMB announced by the People’s Bank of China on the fourth Wednesday will be postponed.
The quality grade price difference is implemented in accordance with the cotton quality price difference table published by the China Cotton Association.
Data source: China Storage and Analysis Information Center</p
