According to online data released by the General Administration of Customs, my country’s cotton imports in June 2021 were 172,100 tons, of which 3,200 tons were imported from Australia, ranking behind U.S. cotton, Indian cotton, and Brazilian cotton, although it fell 34.62% year-on-year. , but the month-on-month increase reached an astonishing 634.64%.
According to feedback from several international cotton merchants and importing companies, inquiries and purchases of Australian cotton in 2020/21 by Chinese cotton textile companies and traders continued to appear in July and August. The growth trend has resumed, focusing on Australian cotton of M 1 5/32 and above grades. A cotton trading company in Qingdao said that as of around mid-August, the bonded and customs cleared Australian cotton spot quantities in China’s main ports for 2020/21 and 2019/20 were relatively low, but the quality indicators were good. Traders mainly sell customs-cleared cotton at a “fixed price”. From August 15 to 17, M 1 5/32 (strong 29/30 GPT) Australian cotton stabilized at 19,500-19,700 yuan/ton (net weight settlement). Cotton sales companies recommend purchasing The merchants come to the warehouse to take samples, test and place orders.
From the survey, foreign businessmen and cotton traders are currently focusing on selling 2020/21 Australian cotton with a shipping date from August to November. The contract quantity ranges from 500-2000 tons, and the grade is M/SM, fiber length 1 1/8 and above, strength 29-31GPT. An international cotton merchant reported that since the second quarter of 2021, the number of customers inquiring and purchasing high-quality Australian cotton has gradually increased, especially the transactions of medium-staple cotton such as 1 3/16 and 1 7/32 have been slightly better. On the one hand, due to multiple factors such as weather, harvesting, and processing, the quality, grade, and spinnability of U.S. cotton have declined in the past two years, and its substitutability for Australian cotton has weakened; on the other hand, U.S. SJV PIMA cotton in 2020/21 , ALACA medium-staple cotton and domestic long-staple cotton are in tight supply, and some textile companies purchase Australian cotton of 1 3/16 and above length to replace medium-long-staple cotton 50S and 60S cotton yarn.
It is understood that the current basis of SM 1 5/32 Australian cotton in the August to November shipping period is stable at 12-13.5 cents/pound (quoted ICE2112 + basis), while 8 The basis difference of US cotton 31-3/41-3 36/37 for September shipping date is 10-11 cents/pound, which is significantly narrower than the quotation of Australian cotton for the same shipping date. A textile company in Jiangsu said that China-Australia relations have not deteriorated further, and no additional tariffs have been imposed on imported Australian cotton. In addition, the basis difference of Australian cotton has continued to decrease, and the competitiveness has increased, and the confidence of domestic textile companies in contract purchasing has continued to rise. </p
