According to cotton trading companies in Qingdao, Zhangjiagang, Guangzhou and other places, in mid-to-late May, due to the oscillatory correction of ICE and Zheng cotton and the initiative of some buyers to reduce the basis of foreign cotton, domestic cotton textile companies resumed production and received orders. Affected by the improved situation, etc., there are some transactions of bonded and customs-cleared US cotton, Brazilian cotton, and Indian cotton (restricted by the sharp rise in cotton prices recently, foreign cotton signings and shipments have been hindered); and currently, Brazilian cotton in 2019/20 is affected by the new crown epidemic. The number of arrivals and warehousing in Hong Kong in May continues to decline due to many reasons such as the outbreak, the sales progress is coming to an end, and the quality of remaining cotton is low. In 2020, Australian cotton will be shipped in early to mid-June at the earliest; the amount of US cotton arriving in Hong Kong in April/May is a period of “lack of supply” , showing “more exports and less imports”, so overall, the bonded cotton + non-bonded cotton inventory at the end of May decreased month-on-month, but the magnitude was not large.
Several international cotton merchants and importers have statistics and calculations that the total inventory of China’s ports at the end of May is still no less than 600,000 tons (bonded cotton + non-bonded), and US cotton, Brazilian cotton, and Indian cotton Cotton and West African cotton inventory resources are still at the forefront. 1. Foreign cotton stocks in Qingdao Port, Zibo, Weifang, Jinan and surrounding areas are about 370,000-380,000 tons (of which Qingdao Port is about 330,000 tons or more); 2. Foreign cotton stocks in Zhangjiagang, Jiangyin, Nanjing and other areas are about 12-13 10,000 tons (including about 100,000 tons in Zhangjiagang port area); 3. The inventory in other ports and bonded areas such as Shanghai, Guangzhou, Tianjin, Ningbo, etc. is about 90,000 to 110,000 tons (due to incomplete surveys, there may be certain discrepancies).
However, it is worth noting that port inventories may show explosive growth from June to August, and some warehouses are increasingly worried: first, a large amount of 2020 Australian cotton will be shipped to China starting in June; second, China Nearly 240,000 tons of 2019/20 U.S. cotton signed by the company from mid-April to mid-May will be shipped and arrive at the port one after another; third, due to the recent FOB and CNF quotations of Indian cotton being significantly lower than those of U.S. cotton and Brazilian cotton (domestic consumption of cotton) Plunging + sharp drop in exports + falling rupee exchange rate), triggering inquiries and purchases from buyers in China, Bangladesh and other countries. Judging from the contract shipment and delivery dates, arrival and performance of the contract will also be concentrated between May and July.
<br
