According to feedback from some cotton trading companies in Qingdao, Shanghai, Zhangjiagang and other places, due to the scarcity of cotton import quotas within the 1% tariff, and the continuous decline of ICE cotton futures in recent days, cotton companies are not only bonded or spot Indian cotton RMB quotations have increased (purchasers bring their own 1% tariff quota for customs clearance), and spot RMB quotations for US cotton and Brazilian cotton have also gradually increased.
A cotton merchant in Zhangjiagang said that although the country has issued an additional 700,000 tons of cotton import quotas with sliding taxes, the following two factors restrict cotton textile companies from using overdrafts in advance. First, the announcement is not clear The actual issuance time of the 700,000 tons of cotton import quotas with sliding tariffs may cause blind overdrafts for applying companies; secondly, only 300,000 tons of the additional 700,000 tons of sliding tariff quotas are not limited to trade methods. Enterprises that have obtained the quotas apply When receiving the quota certificate, you can choose and determine the trading method by yourself, and cotton merchants have little room to operate. Therefore, some bonded cotton in ports such as Qingdao and Zhangjiagang is waiting for customs clearance, and the sliding of quasi-tax quotas can be said to be eagerly awaited.
Judging from the survey, apart from customs clearance of “fixed price” Brazilian cotton, Indian cotton, and US cotton, there have been some transactions this week (mainly due to the Zheng cotton CF2109 contract breaking 16,000 and 16,300 in a row) Waiting for the pull of the integer mark), basis quotations for cargo, bonded cotton, customs clearance cotton, etc., and order price shipments are still tepid or even continue to be light. Several cotton spinning companies in Henan, Jiangsu and other places reported that although ICE futures planned to purchase foreign cotton shipments or bonded cotton in the range of 85-88 cents/pound in May/June/July, the sharp appreciation of the RMB exchange rate has made imports of U.S. The cost of cotton, Brazilian cotton, etc. has dropped significantly. However, because there are not many cotton import quotas left with the 1% tariff, and we hope that “good steel will be used on the cutting edge”, we are also worried that the 700,000-ton sliding tax quota will be issued later than August. Therefore, At present, we can only reduce or even postpone the contract purchase of shipping cotton and bonded cotton, and buy foreign cotton for customs clearance at the port as needed.
Although ICE cotton futures have fallen back in recent days, while Zheng cotton has rebounded strongly, the price difference between domestic and foreign cotton has further widened, which is beneficial to foreign cotton sales, but the import quota will be a hurdle. Cotton spinning mills, traders and other warehouse replenishment operations are blocked from the door. From May 12 to 13, the basis difference of bonded and customs-cleared foreign cotton at ports remained stable. Although inquiries and transactions were weak, not many cotton companies had plans to cut prices, sell goods, or clear positions. On the 13th, the quotations of Qingdao Port customs clearance M 1-1/8 Brazilian cotton and 31-3 36/37 US cotton were 16500-16700 yuan/ton and 17150-17350 yuan/ton respectively (a few merchants quoted more than 17400 yuan/ton) , out of a trend that is very different from the external quotation. </p
