According to feedback from some cotton trading companies in Zhangjiagang, Qingdao and other places, due to the fall in ICE cotton futures from the high level at the end of July and the fierce bidding of central reserve cotton in the past two days, the inquiry/shipment of bonded cotton and customs clearance cotton at ports has been on the rise since last weekend. Although the wait-and-see sentiment of textile companies is still strong, their enthusiasm for purchasing for urgent needs has slightly recovered.
A cotton company in Jiangsu said that on the one hand, the additional 750,000 tons of cotton import quotas with sliding tariffs expected to be issued in 2023 are expected to be issued around mid-September, and some textile and cotton companies have accelerated the use of the remaining 1% tariff quota; on the other hand, internal and external The range of cotton prices has expanded again, and the competitiveness of foreign cotton has recovered, making it more attractive to cotton-related companies holding quotas.
Judging from the quotations of trading companies, the quotations of RMB resources at ports have been raised in recent days (mostly 100-200 yuan/ton), mainly driven by the rebound of Zheng cotton and the strong transaction price of cotton from the state reserve this week. On August 1-2, Qingdao Port’s bonded US cotton EM M 1-1/8 (strong 28/29GPT) net weight quotations were concentrated at 99.20-99.45 cents/pound, and the direct import cost under 1% tariff was 17330-17380 yuan/ton ( The cost under sliding tariffs is 17465-17515 yuan/ton); while the fixed price of bonded Brazilian cotton M 1-1/8 (strong 28/29GPT) reaches 98-100 cents/pound, which mostly overlaps with the quotation of US cotton with the same index. . At present, the “double 28” (or single 29, main grade 31) Xinjiang machine-picked cotton quotation in Jiangsu, Shandong, Henan and other mainland warehouses is 18,150-18,300 yuan/ton. Taking into account the difference in net weight and gross weight settlement, Xinjiang cotton is different from the same price. The price difference of the benchmark US cotton has widened to 1,000-1,100 yuan/ton (it dropped to 800-900 yuan/ton last week), which has attracted great attention from cotton spinning companies who are currently “competing for every inch of profit”.
Judging from the survey, in the past two days, the net weight quotation of customs clearance Brazilian cotton M 1-1/8 in China’s main ports was about 18,400-18,550 yuan/ton, and the quotation of M 1-5/32 rose to 18,600-18,720 yuan/ton. The difference with the quotation of US cotton M 1-5/32 (or 31-3 36/37) with the same index is only 50-100 yuan/ton; and the average transaction price of reserved imported cotton on July 31 and August 1 is equivalent to a height of 3128B “In line”, therefore, although cotton-using enterprises have increased supply space, the purchase price is still very passive.
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