According to feedback from cotton traders in Qingdao, Zhangjiagang, Guangzhou and other places, in the past half month, as Zheng cotton has repeatedly broken down, customs clearance of Brazilian cotton, US cotton, and Indian cotton has slightly improved, and pending order transactions have improved slightly. Port customs clearance Cotton inventories have declined. The 1% tariff import quota is very tight, large and medium-sized cotton spinning mills are chasing shorts and selling prices, coupled with the postponement of replenishment and the relatively concentrated amount of foreign cotton arriving in Hong Kong in March, the overall cotton inventory at the port continues to rise.
At present, some of the bonded warehouses in Huangdao Port that are well-located and easily accessible are overcrowded and it is difficult to find a single person. Most bonded warehouses require cargo owners to respond by merging warehouses, accelerating sales to free up warehouse capacity, or increasing storage and storage fees. However, the pressure on storage capacity is still close to the warning line. A trader in Zhangjiagang said that as of April 2, the total cotton inventory in Zhangjiagang area was approximately 77,600 tons, an increase of 0.18% compared with last week; of which 53,600 tons of bonded cotton were increased by 1.6% compared with last week. April declarations , the amount of foreign cotton planned to arrive in Hong Kong is still relatively large, and all bonded warehouses and transit warehouses are ready.
From the survey, the main contract of ICE cotton futures has continued to consolidate in a narrow compartment at 77-81 cents/pound since March 25, but those holding 1% of the import quota Large and medium-sized cotton textile mills and traders generally postpone the purchase and contract delivery of cargo and bonded cotton; in addition, the basis of traders’ foreign cotton quotations in US dollars is stable and relatively strong, so the signing of cargo and bonded cotton is very light, and even Individual traders reported that the transactions of high-quality and high-priced Australian cotton and US cotton have stalled. According to industry analysis, the surge in raw materials such as cotton, energy, and chemicals in February overdrawn orders for cotton yarn, gray cloth, fabrics, and clothing. It will take time to repair the profit distribution of the industrial chain and end-market confidence. </p
