According to feedback from cotton traders in Qingdao, Shanghai, Zhangjiagang and other places, since early September, cotton spot prices in major ports in China have shown the following three characteristics compared with mid-to-late August: First, the quasi-tax quotas are subject to sliding in batches Driven by the announcement and the correction of ICE futures at the end of August, the number of bonded cotton customs clearance increased, and non-bonded cotton stocks bottomed out; secondly, although the RMB quotations of bonded Indian cotton, Brazilian cotton and US cotton at the port have decreased, traders are still accurate in sliding The acceptance of duty-free cotton import quotas has increased; thirdly, there are very few bonded or customs-cleared Australian cotton spot stocks at ports (including 2019 old cotton). Australian cotton cargoes are concentrated in August/September/November in 2020/21. International cotton merchants and domestic Import enterprises mainly operate cotton with quality index M 1-5/32 and above.
From the quotation point of view, the current August/September shipping date is M 1-5/32 Australian cotton (strong 29GPT) basis price difference is 12-13 cents/bag; while 2020/ The basis differences of US cotton 31-3/31-4 37 and Brazilian cotton M 1-5/32 in 21 reached 12-14 cents/pound and 11-12.5 cents/pound respectively. The price and quality competitiveness of Australian cotton Stronger.
Several cotton textile companies in Jiangsu, Shandong and other places said that the main force of Zheng cotton has continued to rise in recent days, and the average daily transaction price of domestic cotton spot and reserve cotton has risen accordingly. However, ICE’s main contract continues to fluctuate between 92 and 94 cents/pound, and the price difference between domestic and foreign cotton has widened. Therefore, 1% tariff and sliding quasi-tariff quotas are used to import foreign cotton (including the January/March 2022 shipping date for the 2021/22 U.S. cotton), in the short term, the inquiry and delivery of high-quality Xinjiang cotton in the mainland warehouse will be reduced.
On September 8-9, the spot price of M 1-1/8 Brazilian cotton in Qingdao Port was 104.15-106.20 cents/pound, and the direct cost of customs clearance with 1% tariff was 16,400-16,700 yuan. / ton; US cotton 31-3/31-4 36/37 is quoted at 105.20-107.40 cents/pound, and the direct cost of customs clearance with 1% tariff is 16,600-16,900 yuan/ton, which is lower than the “Double 28” Xinjiang machine-picked cotton quotation from the mainland warehouse 2000-2500 yuan/ton. </p
