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The annual meeting of China Cellulose Industry Association-Refined Cotton Branch was held in Beijing on September 25, 2021. The meeting mainly analyzes the impact of raw material market changes and industrial policies on refined cotton industry, and discusses the basic consensus on maintaining the healthy development of cotton cellulose industry. Refined cotton is one of the main raw materials for Sodium CMC, so it has great influence on CMC market.
The year 2021 has witnessed a great opportunity for refined cotton industry. The price increase of cotton linter and refined cotton is not pushed up by individual manufacturer, but the reflection of the market itself. The external cause is the post COVID-19 economic policies to stimulate economic growth. This has caused dramatic industrial growth with raw material price increase. The internal cause is the overall international and domestic price increase of raw materials, including cotton. Meanwhile, the price of cotton linter and refined cotton had been decreasing for over 10 years. These factors all result in the price increase of cotton linter and refined cotton.
Apart from the opportunity brought by price increase, there’s also some uncertainty and risk for refined cotton companies. Price increase of commodity will squeeze corporate profit. Cotton linter is in concentration and has gradually formed resource monopoly. With the beginning of national carbon market online trading, the production cost is also increasing. Refined cotton enterprises should stabilize the current production cost to minimize the effect of price fluctuation on company operation, and also ensure the steady development of downstream cellulose industry.
Refined cotton industry does not belong to high pollution and high energy consumption industry. The enterprises still needs to be more strictly self-disciplined to eliminate the environmental effect on national major activities. Besides, it is important to follow safety policies and ensure safety production and development. What’s more, all enterprises should unite together, avoid disordered competition and market monopoly, and establish a long-term mutual trust relationship.
October 8, 2021
Source: China Cellulose Industry Association
