According to Zhangjiagang Free Trade Zone textile raw material market statistics, in the four weeks from February 14 to March 11, the weekly proportions of Indian cotton stocks in the bonded zone to the total inventory were 48%, 50.85%, 52.18%, and 54.21%, showing continued growth. momentum, while the proportion of U.S. cotton and Brazilian cotton inventories in total inventories continues to decline.
According to statistics, as of now, US cotton accounts for only 7.0% of the cotton inventory in the Zhangjiagang Free Trade Zone, and Brazilian cotton accounts for 12.27%. Both have declined slightly from the beginning of March, but the decrease has been narrower than in January and February. In Qingdao, Shanghai and other ports, the proportion of Indian cotton in bonded area cotton stocks has not declined significantly in the past month or so.
Some institutions and cotton-related enterprises said that the current net weight quotations of Indian cotton M 1-5/32 in major ports in China are concentrated at 21,800-22,000 yuan/ton (CCI’s quotation for outbound resources is slightly higher by 100 yuan/ton); while the price of Brazilian cotton M The fixed price of 1-5/32, US cotton 31-3/31-4 36/37 is as high as 23300-23400 yuan/ton and 23700-24000 yuan/ton, which are significantly higher than the spot quotation of Indian cotton at the port. Similarly, the quoted price of bonded Brazilian cotton M 1-5/32 is 6-8 cents/pound higher than that of India. In comparison, Indian cotton not only has a relatively obvious price advantage, but also has sufficient bonded + non-bonded cotton stocks.
Indian cotton is not popular mainly for the following reasons:
First, the Indian bonded cotton in the library is mainly old cotton from 2019/20 and 2020/21, and the phenomenon of downgrading, collapse and bag breakage is more prominent than that of cotton from other origins; second, although the quotation of Indian cotton is relatively low, Top roller cotton has a high lint rate, large impurities and foreign fibers. Spinners need to remove dust and impurities to remove lint. The spinning loss is relatively large. After conversion, the price difference between the comprehensive cost of spinning and Brazilian cotton is not large. Moreover, Indian cotton The length uniformity deviation is not suitable for spinning cotton yarn above 40S; third, the quotations of American cotton and Brazilian cotton in the bonded area are constantly adjusted with the wide fluctuations of ICE and Zheng cotton (traders often lower the basis), and textile enterprises and middlemen adopt Multi-mode procurement such as point price and fixed price, while Indian bonded cotton/customs clearance cotton is greatly affected by the strong domestic cotton price and joint price increases by exporters and traders.
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