According to feedback from cotton traders in Zhangjiagang, Qingdao, Guangzhou and other places, the quantity of 2019/20 US cotton and Indian cotton arriving and warehousing in Hong Kong since mid-May has continued to increase slightly compared with February/March; while Brazilian cotton has continued to increase slightly due to The outbreak and raging of the COVID-19 epidemic in China has affected land transportation, warehouses and port shipments to a certain extent, and the arrival volume has slowed down; Australian cotton sales have ended in 2019, and spot and ship cargo have basically returned to zero since April. International cotton merchants , Import companies are currently working hard to pre-sell Australian cotton with a shipping date of May/September 2020, grade SM; length 1-5/32 or 1-3/16.
A cotton company in Qingdao said that the quotations of Brazilian cotton and West African cotton in the May/August shipping schedule are still relatively active. Combined with the shipment situation of US cotton in mid-to-late April, it is expected that China’s main ports will be in June-September. The pressure on cotton inventory is only increasing. Traders and textile mills with warehousing needs need to book bonded warehouses and transfer warehouses 2-3 months in advance. First, Chinese companies are rushing to implement the first phase of the China-U.S. trade agreement in the “post-epidemic” period, and the shipment and arrival of U.S. cotton are worth looking forward to; second, China’s victory in the fight against the epidemic is in sight, and textile and clothing companies have resumed work and production on a large scale, while Southeast Asia such as India and Pakistan The major textile countries are still stuck in the quagmire, and exporters and international cotton merchants have to increase their efforts to transfer to China; thirdly, as Europe, Japan and South Korea restart their economies, textile and clothing export orders are expected to rebound strongly in June (especially brand representatives). Work orders), the signing of Australian cotton contracts and the recovery of shipments in 2020 cannot be underestimated.
As of late May, how much bonded + non-bonded cotton inventory are there in China’s major ports? According to the supply statistics and calculations of several large and medium-sized international cotton merchants and import companies, the inventory is about 620,000-650,000 tons (or there are some errors): Qingdao Port (including Qingdao, Jinan ports and surrounding warehouses) is about 400,000-420,000 tons ( Breaking 400,000 tons and gaining industry consensus); Zhangjiagang (including Zhangjiagang, Nanjing, Nantong, Jiangyin, etc.) is about 130,000-140,000 tons; Shanghai, Guangzhou, Ningbo, Tianjin and other ports total 80,000-100,000 tons. Qingdao Port accounts for 60% or even more than 65% of the country’s total port cotton inventory. </p
