According to feedback from cotton companies in Zhangjiagang, Qingdao and other places, due to the very tight cotton import quota within the 1% tariff and the sharp increase in ICE and Zheng cotton prices, cotton traders’ profit margins have significantly expanded. In 2019/20, Indian cotton, Brazilian cotton There are more and more RMB quotations for bonded cotton such as cotton. In customs clearance lint sales, US cotton and Brazilian cotton are mainly based on basis quotations, while Indian cotton, West African cotton, and Australian cotton account for a relatively high proportion of “fixed price” sales. .
As of now, there is no feedback from domestic cotton textile enterprises and large and medium-sized traders about receiving the 894,000 tons 1% quota notice in 2021. The additional 400,000 tons of sliding tariff processing trade quotas and 1% tariff quotas issued in 2020 can be extended to be used before the end of February 2021.
On January 6-7, Qingdao Port’s quotations for 2019/20 31-3 36 (strong 28GPT) and M 1-1/8 were 16450-16550 yuan/ton and 16100-16300 yuan/ton respectively. tons; while the quotation of M 1-1/8 Brazilian cotton for the January/February shipping date has also reached 16,100-16,300 yuan/ton, there is almost no price difference with the same grade and quality of American cotton; the quotation of M 1-5/32 Indian cotton is 15,300- 15,500 yuan/ton (fixed price), an increase of 100-200 yuan/ton from last week.
From the survey point of view, since late December, despite the continuous upward breakthroughs of ICE, international cotton merchants and domestic import companies have not made adjustments to the basis of cargo, bonded cotton or customs clearance cotton. The bullish atmosphere in the cotton spot market is still relatively strong. In addition, due to the recent “fixed price” transactions of Indian cotton, Brazilian cotton, and West African cotton are relatively active (a trader also shipped Indian cotton and West African cotton quickly in 2017/18 and 2018/19), customs clearance cotton in Qingdao, Zhangjiagang and other places Not only has the number of quotations been significantly reduced, but resources have been concentrated on a few large cotton companies and traders, improving prices and risk resistance. </p