According to feedback from cotton traders in Zhangjiagang, Qingdao, Ningbo and other places, cotton inventories in China’s major ports have shown an overall downward trend since late July. Among them, bonded cotton inventories and non-bonded cotton inventories have both declined. The pressure on port storage capacity has further slowed down, and transactions have Mainly American cotton, Brazilian cotton, African cotton, Indian cotton, etc.
A cotton company in Zhangjiagang said that on the one hand, the recent export traceability orders to the United States/EU have continued to rebound, the main ICE contract has stabilized in the 90-95 cents/pound range, and some traders have “lowered the basis and shipped goods quickly”. There are quotas. The enthusiasm for customs clearance of bonded cotton by cotton-using enterprises has rebounded slightly; on the other hand, in addition to the arrival and storage of US cotton in Hong Kong in 2021/22, the shipping schedule of Brazilian cotton in 2022 is concentrated in September/December, while Australian cotton in 2022 is currently not only bonded cotton Spot goods are very scarce, and shipping dates are also concentrated in September/November; Indian cotton cargoes in June, July, and August of 2021/22 are also very low. The pattern of cotton in major ports is that “both exports and imports are not prosperous, but exports are greater than imports”.
Textile enterprises in Jiangsu, Henan and other places judge that since August, the price gap between the price of imported cotton and domestic cotton with 1% tariff has expanded, while the price difference between cotton yarn and domestic cotton yarn from India, Pakistan, Vietnam and other places has continued to narrow (some traders Increase the intensity of price cuts and goods sales), and the traceability orders are still mainly “short orders, small orders”, so the bonded cotton and non-bonded cotton transactions are still difficult to improve in August/September. Some traders estimate that as of August 5, the total cotton inventory in China’s major ports is expected to fall below 350,000 tons, a decrease of 40,000-50,000 tons from early July, of which the total cotton inventory in the Jiaozhou Bay area is about 22-23 Thousands of tons.
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