According to feedback from cotton trading companies in Qingdao, Zhangjiagang and other places, since late October, several large international and domestic cotton merchants have significantly increased their quotations for low-quality and low-grade Indian cotton in 2019/20 (non-CCI auction resources), and the grades are based on SLM , mainly grade 41, with fiber length of 26-27mm, strength of 26-27GPT, and impurities are also relatively large. Although the price is relatively low, domestic steam spinning and low- and medium-count ring spinning enterprises are not “cold”. Inquiries and transactions were relatively deserted.
On November 9-10, an international cotton merchant’s SLM 26 (strong 26GPT) Indian cotton basis price quoted was 12,950-13,000 yuan/ton (net weight); while Indian CCI M 1-5/32 (strong 28GPT ), the quotation reaches 14,400-14,600 yuan/ton. And due to the sharp rise in MCX futures in recent days, CCI’s high-price purchase of new cotton in 2020 and 21, and the main ICE contract opening again at 70 cents/pound, etc., the current shipping schedule of Indian cotton (2020/ 2021), bonded or customs clearance Indian cotton traders enjoy relatively small discounts and profit margins.
A textile company in Dezhou, Shandong said that the current Indian cotton spot (including bonded and customs clearance) in China’s main port is “high and low, and there is a lack of medium-quality lint suitable for textile companies”, either M 1-5/ 32 (or SM 1-5/32., including CCI rotation resources); or grade 41 (or SLM) and below, 27GPT and below indicators, M 1-1/8, M 3/32, etc. are available The supply of goods is relatively small and does not match the actual needs of some C16S-C32S spinning mills.
Some cotton-related companies said that as of mid-November, the number of customs-cleared Brazilian cotton quotes at ports such as Zhangjiagang, Qingdao, and Shanghai was significantly reduced compared with September/October, and a few traders reported December shipping dates. The price of Brazilian cotton in RMB; while the mid-to-high-quality Brazilian cotton resources with shipping date of 31-3/41-4 in November/December, length 37-38, and strength 28-31GPT are not only large in quantity, but also have different origins, main ports of delivery and even prices. There is also more room for negotiation.
A large cotton company in Qingdao suggested that downstream cotton textile mills and middlemen should focus on inquiry and contract purchasing of Brazilian cotton for shipment in November/December/January, instead of rushing to the port to view the goods and place orders. , on the one hand, after intensive and rapid digestion in September/October, the spot Brazilian cotton at the port is mainly M 1-1/8 and below, with small batches, large differences in processing time, and uneven lint quality, which is not conducive to medium and high cotton prices. Cotton yarn is matched with cotton; on the other hand, because most traders have achieved clearance or there is little pressure on inventory, capital flow is relatively abundant; coupled with the support of the surge in US stocks and commodity futures, the continuous “rising” of MCX, etc., traders are almost free of money. There is little room for comparison and bargaining. In addition, the expected continued appreciation of the RMB against the US dollar will also be beneficial to domestic cotton textile mills and traders signing contracts to purchase cargoes of Brazilian cotton, US cotton, Indian cotton, etc. </p
