According to feedback from some cotton traders in Qingdao, Zhangjiagang and other places, as ICE cotton futures have continued to consolidate in the range of 90-95 cents/pound in recent trading days, the daily fluctuations have narrowed. Some cotton futures were not allowed to trade due to the plunge of ICE in late June. Cotton companies that have not closed their sales have successively made external quotations and started sales. However, domestic cotton spinning mills and middlemen do not seem to buy it. The transactions of bonded foreign cotton at ports and ship cargo have continued to be deserted. Some traders have not even opened for more than a week, with only A small amount of RMB resources with basis quotes were traded, and they were concentrated in US cotton/Indian cotton with low basis and medium spinnability. Brazilian cotton, Australian cotton, etc. were difficult to ship.
A medium-sized cotton import company in Jiangsu said that in addition to the serious inversion of the price difference between imported and domestic cotton under the 1% tariff, the medium and long-term new orders of cotton textile companies exported to the United States and Europe are still relatively few, and the domestic cotton supply is very sufficient, the financial situation in June/July The tightening of institutional credit funds, reduction of credit lines, etc. also have an impact on cotton-using enterprises signing contracts to purchase foreign cotton cargo.
Judging from the survey, since July, the enthusiasm and enthusiasm for customs clearance of bonded cotton in China’s main ports have continued to rebound compared with May/June. Cotton trading companies are mainly responsible for customs clearance on their own, resulting in a “decline in bonded cotton and a slight increase in non-bonded cotton” inventory. pattern. According to industry analysis, on the one hand, the recent rebound of Zheng cotton has been significantly weaker than that of ICE, which has led to the inversion of the RMB quotation of customs-cleared foreign cotton at the port and the direct import of foreign cotton under 1% tariff, from 300-400 yuan/ton in the previous two weeks to 500-1,000. Yuan/ton, customs-cleared cotton has received immediate attention and rebounded; on the other hand, compared with bonded cotton, spot and ship cargo, customs-cleared cotton resources have various payment settlement methods, and some traders have credit, 1-3 months account period or acceptance payment Such operations can alleviate the operating pressure of cotton-using enterprises in stages. A trader in Qingdao reported that so far, there are very few Indian cottons in 2021/22 in China’s ports. Traders and centers are still mainly selling old Indian cotton in 2019/20 and 2020/21. Lint cotton has been downgraded, and the bags have collapsed and exposed. heavier.
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