According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Shanghai and other places, inquiries and transactions of bonded and non-bonded cotton in major ports in China have slowed down significantly since early November compared with October. Some in Henan, Jiangsu, Shandong Cotton spinning mills in other places report that there is not much room for cotton selection and price negotiation outside the port (some corporate purchasers left empty-handed).
A cotton company in Huangdao said that although the quantity of US cotton/Brazilian cotton/Indian cotton/Australian cotton arriving in Hong Kong and warehousing in October/November was low, due to trade Merchants have quietly raised the basis difference of foreign cotton (shipped goods, bonded and customs-cleared cotton, including high-quality foreign cotton in the bonded area sold by China Textile and China Cotton), so the activity of point-price transactions has declined; coupled with the release of the second batch of central reserve cotton Imported cotton resources are on the shelves (including US cotton, Brazilian cotton, Australian cotton and other major producing areas), so the port once again shows the trend of “reduction in bonded cotton and slow increase in customs clearance cotton”.
Several bonded warehouses in Zhangjiagang, Huangdao and other places stated that the current quantity of American cotton and Brazilian cotton in Kume has dropped significantly compared with early and mid-October (traders, international The focus of quotations and sales of cotton merchants has shifted to December/January/February/March shipments), and the proportion of inventory has been reduced by more than 40%; however, the inquiries and shipments of Indian cotton in 2020/21 and 2019/20 have been significantly weaker than For foreign cotton from other origins, Indian cotton in Zhangjiagang accounts for more than 40% (nearly 45%) of the total inventory in the bonded area. Currently, the supply of bonded and customs-cleared Indian cotton in China’s main ports is very sufficient (including CCI rotation resources), but shipments in January/March There are very few quotations for Indian cotton resources in the 2021/22 period. Most cotton textile companies and middlemen are not interested in Indian cotton spot and cargo.
Judging from the survey, not only the grade and quality indicators of Indian cotton in the mid-to-late 2020/21 season are somewhat falsely high, but also the impurities and return rate are too high, and the spinnability and consistency are too high. There is a significant decline compared with the previous period; on the other hand, the current cost-effectiveness of Indian cotton is not high and cannot meet the structural needs of cotton spinning mills. According to the survey, the fixed price of Indian cotton M1-5/32 cleared at Qingdao Port on November 15-16 was 21,400-21,700 yuan/ton, while the quotation of US cotton 52-436/37 was about 21,700-21,800 yuan/ton, although the color grade was slightly lower. Poor, but other indicators, spinnability, impurity content, etc. are significantly better than Indian cotton. </p
