As a result, the total cost of imported cotton in 2012 will be higher than that in 2011. The cost of imported cotton will be up to 512 yuan / ton under the new sliding tariff. The correlation analysis will help to reduce the pressure brought by low price cotton to a certain extent, but at the moment, the price difference between domestic and foreign cotton is serious.

In December 19th, the international cotton index (M), representing the average price of the Chinese main port on the import cotton, was 99.53 cents / pound. According to the 1% tariff, the import cost of the folded renminbi was 16253 yuan / ton (the exchange rate was calculated at 6.3303), which was lower than the domestic market price of 2883 yuan / ton.

According to the sliding tax, the import cost of RMB is 16666 yuan / ton, which is lower than the domestic market price of 2470 yuan / ton.

After the adjustment of the sliding tax policy, the cost of imported cotton increased by 512 yuan per ton in 2012.

Therefore, from a static point of view, there is still a price advantage of nearly 2000 yuan per ton in the current cotton market. From a dynamic perspective, under the pressure of over 2 million 500 thousand tons of global supply and demand, foreign businessmen are likely to continue to reduce their sales promotions.

To sum up, due to the serious upside down of cotton prices at home and abroad, the new sliding quasi tax policy is limited. It is expected that textile enterprises will not change too much in the short term. Cotton imports are expected to remain high in the coming months.