What impact does the listing of cotton yarn futures on the ZCE have on the textile industry

On August 18, cotton yarn futures were officially listed and traded on the Zhengzhou Commodity Exchange. Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, and Dai Bohua, Vice Governor of the China Securities Regulatory Commission, attended the listing ceremony.　　Cotton yarn is commonly used as a raw material for woven woven fabrics, knitted fabrics, knitted fabrics and some non-woven fabrics. From the perspective of the attributes of the industrial chain, it is in the middle link of the cotton textile industrial chain, which affects the cost accounting and price evaluation of multiple processes before and after. At the same time, the quality of cotton yarn plays a decisive role in the cost control and cost quality of the weaving and dyeing and finishing process.　　As the first commodity futures variety listed in my country's futures market since 2016, the listing of cotton yarn futures is of great significance. Fang Xinghai said that after the country implemented the pilot cotton target price reform, the price of cotton yarn has increased, and cotton textile enterprises have strong demand for hedging. In this context, the listing of cotton yarn futures is not only to serve the needs of the cotton textile entity industry, but also to serve the internal requirements of the national development strategy.　　 Dai Bohua said that Henan is a major cotton yarn production and consumption province, with its output ranking second in the country and its consumption ranking sixth in the country. The listing of cotton yarn futures will provide new tools for enterprises in the cotton textile industry chain, including Henan enterprises, to manage risks, provide new guidelines for the structural adjustment of the cotton textile industry, and provide new assistance for the reform of target cotton prices.　　 Gao Yong, secretary of the Party Committee of the China National Textile and Apparel Council, believes that the listing of cotton yarn futures will help promote the healthy and stable development of the entire textile industry. On the one hand, it provides hedging tools to help cotton textile companies manage risks and achieve the smooth operation of the entire industry. On the other hand, it provides an authoritative price benchmark, which can provide an effective reference for the adjustment of the production capacity and product structure of the cotton textile industry, and facilitate the implementation of the 'three removals, one reduction and one supplement' policy.　　 'As a textile enterprise, we have been looking forward to the listing of cotton yarn futures for a long time.' Sun Xiaoting, the vice president of Zhejiang Huafu Mélange Co., Ltd., the world's largest supplier and manufacturer of melange yarns, expressed his voice in an interview. He believes that the impact of imported cotton yarn on the domestic cotton yarn market still exists, and the growth of domestic sales and exports has been slow to recover, and the survival and operating pressure of textile enterprises is relatively high. Textile companies can use cotton and cotton yarn futures to lock in production profits and stabilize operating benefits under less risky conditions. 'The listing of cotton yarn futures marks another important step taken by ZCE to build a global textile futures trading center and pricing center.' Chen Huaping, chairman of ZCE, said that cotton yarn futures and the already listed cotton futures and PTA futures have formed together. A relatively complete system of textile raw material futures varieties has been established. ZCE will continue to optimize cotton, cotton yarn and PTA futures rules and systems according to industry needs and market operation conditions, actively guide textile companies to use the futures market to meet the needs of real economy pricing and risk management, and fully serve and support the reform of cotton target prices. Article keywords: 　Cotton yarn cotton yarn futures listed hedging tools