According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Shanghai and other places, due to the CF2009 contract of Zheng cotton falling below 12,000 yuan/ton again, Australian cotton in 2020 has begun shipping to China’s main ports in late May and will be sold domestically in July/August. The off-season for orders has caused spin mills to worry about declining cotton demand and other influences; coupled with the rebound of the COVID-19 epidemic in the United States, China, Brazil, etc. in recent days, some cotton companies have increased customs clearance or bonded U.S. cotton in 2018/19, The shipment intensity of Brazilian cotton, West African cotton, etc., low grade and low price have received more attention.
From the survey, the current RMB net weight quotations of Qingdao Port’s 2018/19 US cotton M 1-5/32 (strong 28GPT) and 31-3 36/37 (strong 28GPT) are 12480-12510 respectively. yuan/ton, 12710-12790 yuan/ton, which is lower than the 2019/20 new cotton price of 150-200 yuan/ton; while a small amount of 2018/19 Indian cotton S-6 M 1-1/8 (strong 28GPT) is quoted at 11850 -11,880 yuan/ton, the price difference with the new cotton price in 2019/20 is only 30-50 yuan/ton, but on the one hand, the inventory of old cotton is relatively low, and the capital occupied is not very large; on the other hand, the purchase of Indian cotton in 2018/19 Costs are high and traders are not willing to clear positions at low prices.
A cotton company in Qingdao said that since June, mainland cotton textile companies and middlemen have focused on the resources of RMB quotations for port customs clearance. There is not much interest in cotton, West African cotton, and American cotton. First, the cotton import quota within the 1% tariff has been very tight recently, and some traders require buyers to bring their own 1% quota for “shipped” sales; second, with the CF2009 contract, the price has exceeded 12,000 yuan/ton and 11,800 yuan/ton, and customs clearance cotton base The differential quotation has dropped by 200-300 yuan/ton (the basis differential of Indian cotton and Brazilian cotton of individual companies has been adjusted back); third, textile enterprises purchase “buy as you use”, and traders’ cotton sales have also been adjusted from “wholesale” to “retail”, 1 , 2 containers are also actively shipping; fourth, the pressure of RMB depreciation is great, and the cost of purchasing foreign cotton with “far month shipping date” is difficult to determine, which is not conducive to accounting and order acceptance. </p
