According to customs statistics, my country imported 70,000 tons of cotton in May 2020, a month-on-month decrease of 43.9% and a year-on-year decrease of 60.7%; since 2019/20 (2019.9-2020.5), a total of 1.223 million tons of cotton have been imported, a year-on-year decrease of 24.43% , both the month-on-month and year-on-year declines in import volume were significantly larger than in April. Domestic cotton textile companies and traders are increasingly waiting to see and wait.
my country’s cotton imports in May 2018 and May 2019 were 130,000 tons (a year-on-year increase of 52%) and 179,800 tons (a year-on-year increase of 36.51%) respectively. Therefore, May is not the month of cotton import and consumption. Low season of demand. It is understood that in May, the arrival volume of US cotton in 2019/20 continued to occupy the first place, followed by Indian cotton, Brazilian cotton, West African cotton, etc., but the gap has widened.
Why does the amount of U.S. cotton arriving in Hong Kong and customs clearance in April/May always dominate the list? Some international cotton merchants and institutions summarized it as follows:
First, the new coronavirus outbreak broke out in Brazil, which greatly affected cotton land transportation, warehousing, port shipping, etc. As of June 29, 2020, Beijing time, Brazil had a total of 1,345,254 confirmed cases, and the epidemic was completely out of control. Therefore, cotton transportation and shipping capabilities have declined significantly (congestion at Santos Port and other ports is extremely serious);
Second, the FOB and other direct export quotations of Indian cotton in 2019/20 are 6% lower than those of US cotton and Brazilian cotton. -8 cents/pound, but due to quality deviation, many impurities, different fiber weights, poor packaging, etc., shipments have been affected to a certain extent. China’s large and medium-sized textile enterprises (with import quotas) and traders are not interested in low-quality and low-price Indian cotton. It is not very “cold”, so although the quantity of Indian cotton shipped and arriving in Hong Kong bottomed out in April/May, the extent is limited;
Third, due to the epidemic, China’s restrictions on Australian cotton, West African cotton, Brazilian cotton, and Indian cotton The inspection of cotton and other products will be strict and tight, the inspection and supervision of imported and exported commodities will be strengthened, and the risk monitoring of imported commodities from high-risk countries and regions will be strengthened. Some foreign cotton export companies and international cotton merchants have become more worried, and shipments have slowed down;
Fourthly, the RMB exchange rate fluctuated widely in May, which has restricted and affected the imports of Chinese companies. In the last week of May, the onshore exchange rate of RMB against the U.S. dollar once exceeded 7.17, setting a new low since September 2019. Non-U.S. cotton shipments and deliveries were also suppressed. </p
