Exclusive news from China Cotton Network: According to data released by the General Administration of Customs, my country’s cotton imports in April 2021 were 230,000 tons, a month-on-month decrease of 17.86%, and a year-on-year decrease of 17.86%. An increase of 84.50%. From January to April, my country imported a total of 1.2 million tons of cotton, an increase of 470,000 tons compared with the same period in 2020, an increase of 64% compared with 2020, an increase of 43% compared with 2019, and an increase of 167% compared with 2018. Imports have increased significantly, but domestic consumption is relatively limited, limited by limited import cotton quotas, and the demand for cotton distribution and other factors. Cotton stocks inside and outside the bonded area have accelerated and accumulated.
According to recent research on the imported cotton market, it is estimated that the current domestic imported cotton inventory has risen to more than 750,000 tons, which is rarely seen in inventory records over the years. Among them The total inventory in Zhangjiagang has also risen to 92,000 tons. In addition to Qingdao regional ports, Zhangjiagang, Tianjin Port, etc., some warehouses in the mainland have also gradually become the main storage battlefield for imported cotton. The increase in inventories is not only related to the early trade agreement signed between China and the United States, China’s commitment to purchase large amounts of US cotton, but also to the restrictions on the use of raw materials in foreign trade orders by some companies. Especially after the Xinjiang cotton incident occurred this year, textile companies have become more cautious about external risks, and the growth of cotton imports has become a matter of course. However, domestic cotton consumption has not yet completely shaken off the impact of the epidemic, and some overseas export orders have not yet returned to normal. Furthermore, import quotas are limited and cotton customs clearance is slow, which also has a certain impact on its digestion.
In May, many domestic textile companies have submitted applications for sliding tax quotas on imported cotton, and it is expected that there is a high probability that the quotas will be issued this month. It is worth noting that although the inventory of imported cotton has been high recently, the average price of foreign cotton that has passed the 1% tariff quota is about 1,500-1,800 yuan/ton lower than the price of domestic cotton. In May and June last year, domestic and foreign cotton prices were basically the same. Therefore, if the sliding tax quota is issued this time, its price will still have a strong advantage compared with the same period last year. In particular, some high-stock international and domestic cotton companies may have a strong willingness to reduce stockpiles, which may prompt a sell-off “flood release” in the market to alleviate the problem. High inventory pressure.
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