According to customs statistics, my country imported approximately 160,000 tons of cotton in June 2022, a year-on-year increase of approximately 4.4%, continuing the year-on-year growth trend of cotton imports in May (a year-on-year increase of 5.22% in May); while from January to June 2022, my country’s cotton imports increased by approximately 4.4% year-on-year. The total volume of imported cotton fell by about 26.1% year-on-year. In the 2021/22 year (2021.9-2022.6), the total volume of imported cotton in China dropped by about 39.8% year-on-year. The single-month import volume in May/June not only “turned from negative to positive” year-on-year, but also significantly made up for the previous period. Imports are insufficient.
Why did my country’s cotton imports continue to rebound strongly year-on-year in June? Industry analysis mainly includes four points:
First, ICE cotton futures plunged sharply from mid-June to the end of June (the main December contract fell from 126 cents/pound to 91.20 cents/pound, down 34.80 cents/pound, a drop of 27.62%), so a certain amount of cotton textile The ON-CALL price contracts of enterprises and intermediaries were quickly concluded; secondly, when the main ICE futures contract fell below 95 cents/pound or even 100 cents/pound, some buyers engaged in bargain-hunting operations; thirdly, due to the sharp decline in ICE’s market and the 2021/ At the end of 2022, the direct import cost of foreign cotton under the 1% tariff and the quotation of customs clearance cotton at the port have rapidly narrowed or even converged. In addition, there are relatively few RMB quotation resources at the port in June. Therefore, traders, large and medium-sized textile enterprises bonded cotton Enthusiasm for customs clearance continues to recover; fourth, the U.S. government has comprehensively upgraded its ban on Xinjiang cotton imports from June 21. Some export-oriented companies and foundries that receive export orders from the United States and the European Union have to purchase foreign cotton or import foreign yarn to meet their rigid needs. to solve the problem.
A cotton import company in Qingdao said that it is expected that my country’s cotton import volume will continue its year-on-year growth trend in July. In addition to some buying triggered by the decline of ICE, the inversion range between imported cotton yarn and domestic yarn has always been 3,500-4,500 yuan/ton, making it difficult to effectively shrink. Narrowness is also the main factor that causes cotton mills to prefer direct purchase of imported cotton yarn. In addition, compared with Indian cotton yarn, Pakistani cotton yarn, and Vietnamese yarn, spinning contracts using US cotton, Brazilian cotton, and Australian cotton have greater room for negotiation.
</p
