Recently, some foreign businessmen and cotton importing companies have expressed increased concerns about the smooth execution of contracts in January, February, and March 2020. Some buyers have notified the seller to postpone it for 15 days. -30 days delivery.
Industry analysis: First, the price difference between domestic and foreign cotton has continued to narrow since late January, and the competitiveness of foreign cotton has declined significantly. At present, the net weight customs clearance cost of bonded M 1-1/8 Brazilian cotton and SM 1-5/32 West African cotton at the port under 1% tariff is 13,200-13,400 yuan/ton, and the net weight of “double 28” Xinjiang machine-picked cotton in the inland warehouse is 13,000-13,200 yuan/ton. The price of RMB/ton is basically the same; while the quotations of Brazilian cotton and Indian cotton from port traders are 300-400 RMB/ton higher than Xinjiang cotton; secondly, affected by the continued spread of COVID-19, cotton textiles in most provinces such as Jiangsu, Zhejiang, Henan, and Shandong have The resumption period of enterprises has been postponed to mid-to-late February, and the procurement of raw materials such as cotton has been postponed accordingly; coupled with various factors such as transportation vehicles and restricted roads, buyers have actively requested to suspend the execution of contracts; third, the downstream consumer market has been affected since mid-to-late January Rapid cooling or even freezing has increased the pressure on payment collection and payment, and the capital flow of some textile companies has tightened. Therefore, delaying contract execution is conducive to cotton-using companies resuming production and expanding recruitment.
In response to USDA’s latest monthly report, which increased global cotton ending stocks by 2.5 million bales (increased production and reduced consumption), traders and textile companies generally believed that this was expected. On the one hand, China’s new coronavirus pneumonia Not only does it affect domestic cotton consumption demand, but it also causes a large “dive” in cotton yarn imports from India, Pakistan, Vietnam and other countries, which has an impact on the production and sales of yarn mills in Southeast Asia and Central Asia. On the other hand, some WTO members are likely to take advantage of China’s new crown epidemic. Making “fuss”, overreacting and imposing unnecessary trade restrictions.
</p
