According to feedback from several international cotton merchants and cotton importing companies, since late December, the spot and MCX futures prices of domestic cotton S-6, J34, MCU5 and so on in India have continued to rise sharply. In particular, the quotation of S-6 in Gujarat has increased significantly, and On December 20, CCI listed the 2020/21 cotton benchmark price for sale again by 200 rupees/kandi compared with two weeks ago.
A cotton exporter in Mumbai said that the reasons for the strong rebound in Indian cotton prices in the past week or so were the smooth receipt of orders by Indian textile and clothing companies in the fourth quarter of 2021 (some yarn mills have placed orders until after June 2022) and the continued strong demand for cotton consumption. , it is unlikely that the Indian government will cancel the 10% tariff on imported cotton in the short term, and CCI cotton stocks have basically bottomed out, resulting in a significant weakening of the government’s control of cotton prices and resource supply capabilities.
However, the negative impact of the sharp rise in cotton prices in India has begun to appear. On the one hand, some European, American, Japanese and Korean textile and clothing brand companies and retailers in 2022 have clearly informed Indian companies that if the contract price is increased or delivery is delayed, orders will be transferred to Bangladesh. China, Sri Lanka, Pakistan, Vietnam and Cambodia and other neighboring countries; on the other hand, India’s FOB and CNF/CIF quotations continued to rise, triggering strong resistance from buyers including China, Bangladesh, Vietnam and other countries, and the contracted cotton export volume showed a rapid downward trend. According to statistics, India’s cotton export volume in October and November 2021 was only 700,000 bales, a decrease of more than 40% compared with the same period last year.
According to the survey, affected by the rise of S-6 in India and the main contract of ICE cotton futures rising above 110 cents/pound, from December 28th to 29th, the bonded 2020/21 Indian cotton M 1-5/32 in various major ports in China The quoted price is 117.8-118.8 cents/pound (the basis difference is 7.5-8 cents/pound, and the lower “fixed price” of Qingdao Port is 114-116 cents/pound), which is 2.5-3 cents/pound higher than that in mid-December; and The “fixed price” of Indian cotton M 1-5/32 for port customs clearance rose to 21,100-21,300 yuan/ton (including CCI rotation resources), and the price difference with US cotton 31-3/31-4 36/37 narrowed to 2,000 yuan/ton. About yuan/ton.
Some traders reported that although the quantity of bonded Brazilian cotton and US cotton at the port has been relatively small since mid-December, cotton spinning companies and middlemen who hold a 1% tariff import quota are still not “cold” about Indian cotton, and transactions continue to be deserted.
According to feedback from several international cotton merchants and cotton importing companies, since late December, the spot and MCX futures prices of domestic cotton S-6, J34, MCU5 and so on in India have continued to rise sharply. In particular, the quotation of S-6 in Gujarat has increased significantly, and On December 20, CCI listed the 2020/21 cotton benchmark price for sale again by 200 rupees/kandi compared with two weeks ago. A cotton exporter in Mumbai said that the reasons for the strong rebound in Indian cotton prices in the past week or so were the smooth receipt of orders by Indian textile and clothing companies in the fourth quarter of 2021 (some yarn mills have placed orders until after June 2022) and the continued strong demand for cotton consumption. , it is unlikely that the Indian government will cancel the 10% tariff on imported cotton in the short term, and CCI cotton stocks have basically bottomed out, resulting in a significant weakening of the government’s control of cotton prices and resource supply capabilities. However, the negative impact of the sharp rise in cotton prices in India has begun to appear. On the one hand, some European, American, Japanese and Korean textile and clothing brand companies and retailers in 2022 have clearly informed Indian companies that if the contract price is increased or delivery is delayed, orders will be transferred to Bangladesh. China, Sri Lanka, Pakistan, Vietnam and Cambodia and other neighboring countries; on the other hand, India’s FOB and CNF/CIF quotations continued to rise, triggering strong resistance from buyers including China, Bangladesh, Vietnam and other countries, and the contracted cotton export volume showed a rapid downward trend. According to statistics, India’s cotton export volume in October and November 2021 was only 700,000 bales, a decrease of more than 40% compared with the same period last year. According to the survey, affected by the rise of S-6 in India and the main contract of ICE cotton futures rising above 110 cents/pound, from December 28th to 29th, the bonded 2020/21 Indian cotton M 1-5/32 in various major ports in China The quoted price is 117.8-118.8 cents/pound (the basis difference is 7.5-8 cents/pound, and the lower “fixed price” of Qingdao Port is 114-116 cents/pound), which is 2.5-3 cents/pound higher than that in mid-December; and The “fixed price” of Indian cotton M 1-5/32 for port customs clearance rose to 21,100-21,300 yuan/ton (including CCI rotation resources), and the price difference with US cotton 31-3/31-4 36/37 narrowed to 2,000 yuan/ton. About yuan/ton. Some traders reported that although the amount of bonded Brazilian cotton and US cotton at the port has been relatively small since mid-December, cotton spinning companies and middlemen who hold a 1% tariff import quota are still not “cold” about Indian cotton, and transactions continue to be deserted.
