The National Cotton Yarn Trading Centre was inaugurated in Urumqi in Xinjiang province, which will provide cotton yarn transactions, spot listing transactions, spot unilateral bidding transactions, negotiated transactions, and other services.
In the future, the center will offer pre-sale capacity listing transactions, warehouse receipt trading, bonded trading of imported cotton yarn, etc. At the same time, it will also explore the order trading model and cooperate with the existing futures trading market.
According to Chinese experts, the center will make cotton yarn transactions more efficient and the market more transparent. It will open up cotton yarn production, processing, circulation, and consumption, smoothen transactions, and leverage information flow.
The most significant benefit the center will offer is to implement the close connection and coordinated development of all links in the textile industrial chain and will also grasp the price changes and market trends in real-time, thereby reducing risks for both cotton farmers and cotton yarn spinners.
Apart from regulating the supply and demand of cotton yarn, the center will also accelerate the improvement of cotton quality and yields in the province while setting up a Xinjiang cotton traceability system and branding Xinjiang cotton globally.
Along with producing 90 percent of China’s cotton, Xinjiang province has seen rapid development of textile and garment clusters, mainly due to the abundant availability of raw cotton. Plants have also been set up to produce polyester fiber and yarn in recent years.