China Kicks Off Cotton Yarn Futures as Peak Season Begins
Zhao Xingwei
DATE:  Aug 07 2017
/ SOURCE:  Yicai
China Kicks Off Cotton Yarn Futures as Peak Season Begins China Kicks Off Cotton Yarn Futures as Peak Season Begins

(Yicai Global) Aug. 7 -- China Securities Regulatory Commission will introduce cotton yarn futures to the Zhengzhou Commodity Exchange on Aug. 18, a spokesperson said at a press briefing on Aug. 4.

The exchange has selected 35 large textile manufacturers with a production capacity of over 100,000 spindles as suppliers for the futures, said an official at the exchange, adding that all the suppliers are based in key cotton yarn producing provinces and markets, such as Shandong, Henan, Jiangsu and Zhejiang.

Henan Province Textile Products Quality Supervision and Inspection Institute and Zhejiang Textile Testing Institute have been designated to assess the quality of the futures.

Foreign imports and a slowdown in cotton yarn consumption and export growth have caused trouble for Chinese textile firms, so they want to start trading futures as soon as possible, the official said.

A huge domestic output and regular supplies from state cotton reserves has effectively reduced uncertainties over cotton yarn prices, with estimates putting China's cotton production at 5.37 million tons in 2017/2018.

The securities commission's decision has been timed to coincide with the beginning of the industry's peak season in China, ensuring the futures get off to a solid start.

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Keywords:   Commodities,New Products,Cotton Yarn,Futures,ZCE