According to feedback from some cotton trading companies in Zhangjiagang, Qingdao and other places, inquiries and shipments of bonded cotton at ports have shown slight improvement since mid-July, with “fixed price” US cotton and Brazilian cotton mainly, and a small amount of low-basis and low-price cotton. There are also transactions in West African cotton; although the spot bonded cotton is no longer “empty”, factors such as the approaching launch period of new cotton in 2022/23, the depreciation of the RMB and the slow recovery of export orders for cotton textile companies have caused great sales pressure on international cotton merchants and trading companies. protrude.
There are three main reasons why the “fixed price” bonded cotton transaction bottomed out: first, when the main December contract of ICE cotton futures fell to 85-90 cents in mid-July, it triggered bottom-buying operations by cotton textile companies and traders; second, the recent cotton clothing /Fabrics/Cotton gray fabric traceability orders have rebounded, mainly for exports to the United States/European Union and other knitted clothing and home textile orders. Some order contracts not only explicitly ban “Xinjiang cotton”, but also specify the proportion of U.S. cotton content; the third is to use imported U.S. cotton , Brazilian cotton yarn, although the cost is significantly higher than that of domestic cotton yarn, the domestic sales quotation also leaves domestic cotton yarn far behind; in addition, the indicators of medium and high-quality US cotton/Brazilian cotton yarn are significantly higher than those of Indian yarn /Pakistani yarn/Vietnam yarn, European and American customers are more willing to accept it, and their contract bargaining power is improved.
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