Based on feedback from cotton traders and cotton textile mills, since late November, customs clearance of Indian cotton, Brazilian cotton, and U.S. cotton at the port has been more “fixed price”, while bonded cotton and ship cargo have basically been quoted at 100% basis. (ICE2103+basis).
On December 16-17, Qingdao Port M 1-5/32 Indian cotton buyers quoted 12,950-13,000 yuan/ton within the 1% tariff quota, and customs-cleared cotton quoted 14,400-14,500 yuan/ton ( They are all “fixed price”, and the supply quoted by CCI is slightly higher at 100-200 yuan/ton); while the “fixed price” of Brazilian cotton M 1-1/8 spot is stable at 15,600-15,700 yuan/ton (2019/20 , 2020/21), the price difference with Indian cotton has widened to more than 1,000 yuan/ton; in comparison, there are more “fixed price” resources for port customs clearance of US cotton, with 31-3 36 (strong 28GPT) quoted at 15,600-15,700 yuan/ton. tons, which is completely “in line” with Brazilian cotton of the same quality and grade.
A medium-sized trader in Huangdao said that in the past week or so, the “fixed price” transactions such as Brazilian cotton and Indian cotton have been slightly better than the “basis difference” transactions, especially the color grade is slightly lower, but the length, U.S. cotton and Brazilian cotton, which have relatively good strength, horse value, impurity content and other indicators, have attracted the attention of textile enterprises. Currently, the quota within the 1% tariff is very tight, so some traders quote more RMB prices for bonded cotton at ports (requiring purchasers With imports within the 1% tariff quota), domestic cotton textile companies and middlemen are expected to overdraw the 1% tariff quota in 2021 and place orders in advance.
The “fixed price” sales of foreign cotton have increased significantly compared with previous years for the following three reasons: First, there is currently a certain amount of 2017/18 and 2018/19 old cotton in port inventory, and the color grade has dropped. Obviously, but other indicators are good, without re-inspection, it is difficult to quote the basis; secondly, the grade, quality, impurity content, etc. of Indian cotton, Brazilian cotton, and American cotton processed and shipped in the middle and late stages of 2019/20 are not included. “Awesome”, the basis quotation is low, and the “fixed price” is generally only 50-100 yuan/ton lower than the basis quotation; thirdly, “fixed price” sales are easier to settle than basis transactions, which is conducive to negotiation between buyers and sellers. bargain. </p
