According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Shanghai and other places, the RMB quotations of foreign cotton resources in China’s major ports have rebounded in the past week or so, with the US cotton transactions in 2020/21 and 2021/22 being slightly better. , African cotton, Indian cotton, and Brazilian cotton shipments have also recovered slightly; however, affected by the excessive inversion of domestic and foreign cotton prices, the countdown to the launch of new cotton in 2022/23, and the continued depreciation of the RMB exchange rate, most traders’ quotations have some negotiation , there is room for negotiation, and it is not uncommon for prices to be reduced by 200-300 yuan/ton to facilitate transactions.
A cotton importer in Qingdao said that the industry generally has certain expectations for the rebound in orders during the “Golden Nine and Silver Ten” period in the cotton textile and apparel industry. The forward orders received by spinning and weaving companies in August/September have also continued to rebound, and export and domestic sales terminals have switched to Good expectations have increased; coupled with the current low inventory of cotton and other raw materials in textile companies and the price of Zheng Cotton’s main CF2301 contract falling to the 14000-14500 range, the yarn mills are slightly more willing to restock in the short term.
Judging from the survey, the RMB quotations of bonded US cotton 31-3/31-4 37 in Qingdao Port on September 8-9 were concentrated at 21,000-21,300 yuan/ton (net weight), while the bonded Brazilian cotton M 1-5/32 ( The quotation of Qiangli 28/29GPT) has also reached 20,500-20,800 yuan/ton, and the price difference with the same index of US cotton has dropped to about 500 yuan/ton. However, considering that Brazilian cotton has a high short staple rate, low length, and slightly larger impurities, etc. Weaknesses: Most textile companies choose American cotton. In addition, the price of Indian cotton M 1-5/32 for customs clearance is only 18,000-18,400 yuan/ton, which is lower than the price of Brazilian cotton of the same quality, 2,000-2,500 yuan/ton. Therefore, inquiries and shipments have also increased compared with June/July.
Cotton spinning enterprises in Jiangsu, Zhejiang and other places reported that since the second quarter of 2022, the proportion of yarn mills in India, Pakistan, Vietnam and other countries that have reduced and stopped production has continued to be high, and the production capacity of OE yarn, C32S and below low-count ring spinning yarn has declined, so some Southeast Asian orders have a tendency to return to the Chinese market (exports to Europe and the United States are still mainly based on traceability orders). Cotton spinning mills pay more attention to and inquire about bonded low-quality/low-index US cotton, Indian cotton, and African cotton.
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