According to customs statistics, my country imported 200,900 tons of cotton in March 2020, a year-on-year increase of 32.3%, sweeping away the sharp decline in cotton imports from January to February. From January to March 2019, my country imported a total of 610,900 tons of cotton, a year-on-year decrease of 7.6%. The decrease in foreign cotton imports was significantly narrower than that in 2019/20 (a total of 1.02 million tons of cotton imported from 2019.8-2020.3, a year-on-year decrease of 19%), indicating that The COVID-19 outbreak in the first quarter had little impact and damage on my country’s cotton imports. Chinese textile mills and traders did not cancel or delay contract performance on a large scale due to the sharp decline in ICE and Zheng cotton and the impact of the epidemic on shipments and deliveries.
It is worth noting that after Brazilian cotton accounted for 56.57% of China’s total imports in January-February 2020 (the proportions of US cotton, Indian cotton, and Australian cotton were 17.44% and 11.36% respectively) , 6.8%). In March, Brazilian cotton once again accounted for more than 40% of China’s total imports that month. It has been China’s top cotton importer for several consecutive months, leaving cotton imports from other origins far behind. It can be said that “A single branch grows taller”. Judging from the investigation of Qingdao, Zhangjiagang, Shanghai and other ports, the current supply of bonded, May-July shipping and customs clearance Brazilian cotton in 2019/20 is very sufficient, and traders are actively quoting basis (CF2005 + basis net weight), compared with the United States. Cotton, Indian cotton, West African cotton, etc. are more active and confident.
Why can Brazilian cotton imports “leave a few streets ahead” of cotton from other origins? The reasons analyzed by the industry are as follows:
Firstly, the Brazilian cotton in 2019/20 was strong due to weather, varieties, management level, ginning quality, etc. (a high proportion of cotton with lengths of 1-1/8 and above), lint cotton The quality has obvious advantages over Indian cotton and West African cotton, and it is not obviously at a disadvantage compared with high-grade and high-quality American cotton and Australian cotton;
Secondly, high-quality Brazilian cotton has higher quality than Australian cotton and American cotton. The price is quite attractive. For example, in late April, the RMB quotation of SM 1-5/32 Australian cotton was around 12,000 yuan/ton (including 38), while the quotations of EMOT/MOT M 1-5/32 US cotton and SM 1-5/32 Australian cotton were respectively 12,400-12,500 yuan/ton, 13,500-13,800 yuan/ton;
Third, the Brazilian government has increased the improvement of “shortcomings” such as land transportation and shipping schedules, and the performance of the Brazilian cotton contract in 2019/20 It is relatively timely; coupled with the large bonded volume and high consistency, textile enterprises and middlemen have a large choice space, so it is more favored by Chinese buyers.