According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Shanghai and other places, in late October, all major ports in China showed inventory continued to decline and customs clearance was relatively active. Among them, the decline in bonded cotton inventory has slowed down, but not bonded cotton. The increase in cotton inventory is relatively large (the base of customs clearance cotton inventory is low, so the actual increase is not outstanding).
An international cotton merchant estimates that as of the end of October, the total cotton inventory at various ports across the country may have dropped to 360,000-380,000 tons (bonded + non-bonded), of which about 200,000-220,000 tons, Zhangjiagang and Nantong, Nanjing and other ports are about 80,000-90,000 tons, and other ports such as Guangzhou, Shanghai, Tianjin, Ningbo and other ports have a total cotton inventory of about 60,000-80,000 tons.
A medium-sized cotton company in Jiangsu said that on the one hand, due to multiple factors such as delayed port shipments, weather, and the US cotton epidemic, the US cotton/Brazilian goods arriving in Hong Kong and warehousing in October The quantity of cotton/West African cotton has declined compared with August/September; on the other hand, China Textile Group/China Cotton Group and others have adopted a “two-pronged approach” – on the one hand, they vigorously purchase bonded and immediate foreign cotton, and on the other hand, they put high-quality imported cotton from bonded areas into the cotton textile market. Resources, bonded foreign cotton customs clearance is expedited. As ICE futures reached new highs in the past two days and Zheng cotton’s upward trend was blocked, it fell back sharply. The basis quotation advantage of foreign cotton for port customs clearance has become more and more obvious, which has attracted great attention and favor from cotton textile enterprises and middlemen, and the transactions have heated up.
From the survey, the current net weight quotation of Qingdao Port customs clearance US cotton EMOT31-3/31-436/37 (strong 29GPT and above) is 23100-23300 yuan/ton (trader quotation), which is 200-300 yuan/ton lower than the quotation of “double 28” machine-picked cotton in Henan, Jiangsu, Shandong and other inland warehouses (taking into account the net weight and public price difference); while the net weight quotation of Brazilian cotton M1-1/8 for port customs clearance is concentrated in 22,700-22,900 yuan/ton (strong 28GPT, quoted by traders), which is lower than the 600-800 yuan/ton of Xinjiang cotton purchased by the “double 28” machine in the mainland warehouse. </p
