According to customs statistics, my country imported 208,100 tons of cotton in October, down 1% from the previous month, but a year-on-year increase of 185%; from January to October 2020, my country imported a total of approximately 1.61 million tons of cotton, a year-on-year increase of 1.1% ( However, the cumulative cotton imports from September to October reached 420,000 tons, a year-on-year increase of 169%).
Looking specifically, U.S. cotton, Brazilian cotton, Indian cotton, West African cotton, Uzbek cotton, etc. were still at the forefront of imports in October. Among them, the import volume of U.S. cotton in 2018/19 and 2019/21 accounted for the same month. More than 50% of the total (more than 100,000 tons again), and mainly medium and high-grade, high-quality cotton resources of M grade and above, 1-1/8 and above.
It is worth noting that imports of Indian cotton (including CCI rotation resources) showed a more obvious recovery trend in October than in August/September, while Brazilian cotton has experienced repeated declines due to basis differences. The upward adjustment and the narrowing of purchasing space for port bonded and customs cleared spot resources have reduced the proportion of total imported cotton imports that month. Cotton trading companies in Qingdao, Zhangjiagang and other places reported that in October, the transactions of foreign cotton spot goods (including bonded cotton and customs clearance cotton) at the port were very active. Brazilian cotton/US cotton with low basis difference and slightly higher cost performance was once popular for inquiries and shipments.
Why did cotton imports continue to increase significantly year-on-year in October? Several large cotton and textile companies summarized the following points:
First, 9/10 “short, flat and fast” Thanksgiving and Christmas orders suddenly increased explosively, and a large part of the raw material inventory Cotton textile mills, which are relatively low-priced and can be purchased as needed, are rushing to replenish their stocks and work overtime to produce. Whether from the perspective of transportation, epidemic prevention, or price, purchasing spot cotton from the port is a good option;
II In October, Xinjiang cotton in 2020/21 is at the peak period of acquisition, processing, and warehousing. Considering that the color grade and quality indicators of the machine-picked cotton in Northern Xinjiang this year are not very “awesome” and the ginners are reluctant to sell, the basement will be available in the short term. The “Double 28/Double 29” resources are tight;
Thirdly, the new crown epidemic has broken out in Urumqi, Kashgar and other places. Not only has the supervision of cotton imports and exports been greatly slowed down, but also mainland textile companies, cotton traders and futures Now the company is waiting for the 2020/21 Xinjiang cotton purchase to be postponed for 10-15 days, and US cotton, Brazilian cotton and others “took advantage of the opportunity”;
Fourthly, the “big drama” of the appreciation of the RMB exchange rate in October was staged. The cost of foreign cotton imports has dropped significantly, and the price difference between domestic and foreign cotton has continued to narrow;
Fifth, in October, the additional 400,000 tons of sliding quasi-tariff processing trade quotas issued in 2020 were successively issued, which is very important for some export-oriented enterprises. In other words, the issuance of quotas can be said to be a timely help, easing the cost pressure of cotton consumption on enterprises. </p
