According to feedback from cotton trading companies and foreign businessmen in Qingdao, Zhangjiagang, Shanghai and other places, since late December, RMB quotation inquiries and transactions of foreign cotton at ports have continued to be active, but ship cargo and bonded cotton quoted in US dollars have shown overall prosperity. The degree is not high (CCI’s January/February shipping schedule for high-quality Indian cotton has received slightly better attention and signings). Some traders have cleared Indian cotton, Brazilian cotton, West African cotton, and American cotton in 2019/20 and 2020/21. Waiting for “destocking” is more obvious; but overall, due to the recent substantial increase in the arrival and storage volume of Brazilian cotton in 2020, spot and bonded foreign cotton shipments have slowed down compared with November and December (U.S. cotton has closed due to the price difference between domestic and foreign cotton) Narrow, the high basis does not fall but the oscillation is weak), coupled with the escalation of epidemic prevention and control and the decline in road transportation capacity, so the import of foreign cotton at the port exceeds the export, and the pressure on storage capacity gradually rebounds. Considering that a large amount of US cotton, Brazilian cotton, and Indian cotton will still arrive in Hong Kong in February/March, some large and medium-sized cotton trading companies reserve warehouses with better locations in the bonded area, convenient access and relatively reasonable charges 1-2 months in advance. .
According to the survey and estimation of port inventories of several foreign and large and medium-sized cotton importing enterprises, as of the end of January, the total foreign cotton volume in the bonded cotton + non-bonded cotton area has exceeded 450,000 tons, or close to 470,000-480,000 tons. U.S. cotton, Brazilian cotton, and Indian cotton rank in the top three, with cotton from West Africa, Australia, and other origins accounting for relatively low proportions. Among them, foreign cotton stocks in Huangdao, Jinan and surrounding areas are expected to reach 260,000-270,000 tons, accounting for about 55% of the total cotton stocks in all ports across the country.
It is understood that ports such as Qingdao and Zhangjiagang have implemented “container disinfection”. Some companies have reported that the cost is about 500-800 yuan/container. The epidemic prevention and control requirements for bonded areas and transit warehouses have been upgraded again, so it is possible As a result, the foreign cotton arriving at the port has been backlogged due to the inability to be loaded and unloaded in time, the pressure on the bonded warehouse capacity has further increased, and the purchase of foreign cotton at the port has slowed down. First, as the Spring Festival approaches, all major cotton ports have a shortage of transportation vehicles (drivers are required to hold a negative nucleic acid test certificate for 3-7 days, and some areas even require “double-antibody” test reports). The superposition of vehicles and other disinfection efforts have intensified, intensifying the loading and unloading of cotton at the port. Second, due to increased warehouse disinfection, cabinet disinfection, and inspection upgrades, cotton customs clearance and pick-up time have been significantly lengthened (the time is uncertain). Therefore, domestic companies with short-term replenishment needs have to Transition to purchasing Xinjiang cotton. </p
