According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Shanghai and other places, with the internal and external market rising in the past week, not only the sales volume of foreign cotton cargo and bonded cotton contract sales have slowed down compared with mid-to-late June, but also the customs clearance cotton has been removed. The “fixed price” shipment difference is surprising, and shipments such as basis quotations, pending orders, and point prices are somewhat deserted.
Judging from the survey, since early July, the basis difference between cotton companies’ quotations in US dollars and RMB has remained stable, while the “fixed price” has increased slightly as domestic and foreign futures prices have risen. On July 7-8, Qingdao Port customs clearance M 1-5/32 Indian cotton was quoted at 16350-16500 yuan/ton; M 1-5/32 Brazilian cotton was quoted at 17250-17400 yuan/ton; and US cotton EMOT 31-3/31 -4 quotations reached 17,350-17,550 yuan/ton, and the price difference between Brazilian cotton and American cotton of the same quality and grade narrowed compared with May/June.
A large cotton merchant in Qingdao said that the imported cotton market has recently shown the following three characteristics: First, the resources for bonded cotton to quote RMB prices continue to increase (purchasers bring their own quotas for customs clearance); Including Indian cotton, Brazilian cotton (especially Indian cotton is prominent), US cotton and West African cotton; secondly, some traders have begun to place orders and basis quotations have slid to the price of cargo/bonded cotton under the standard tariff, such as bonded Indian cotton on July 8 The net weight of M 1-5/32 is quoted at 16,000-16,200 yuan/ton, and the buyer needs to bring his own sliding quasi-tariff quota for customs clearance; third, spot inquiries and transactions in US dollars at the port are relatively light, and the bonded + non-bonded cotton inventory at the port continues to grow slightly, and the warehouse Storage pressure is difficult to alleviate.
Cotton textile companies in Shandong, Jiangsu and other places said that on the one hand, the reserve cotton rotation will start in 2021, so the industry generally judges the probability of delaying the issuance of the 700,000 tons sliding tax cotton import quota. Larger, so “overdraft” sliding quasi-tax quotas are becoming more cautious; on the other hand, the cotton reserves in 2021 will mainly be lint cotton purchased and stored in 2011-2013, which will “collide with bonded, customs-cleared, medium and low-quality US cotton, Indian cotton, etc.” “, which is not conducive to traders’ shipments and clearance; furthermore, cotton traders’ quotations for customs clearance of US cotton and Brazilian cotton are in line with or even inverted for Xinjiang cotton in inland warehouses, and their competitiveness needs to be improved. For example, the current quotation of 3129B Xinjiang cotton in warehouses such as Henan and Shandong is 17,000-17,200 yuan/ton, which is almost seamlessly connected with Brazilian cotton M 1-5/32. </p
