According to feedback from some international cotton merchants and importing companies, due to the continuous oscillation and rise of ICE futures since December and the return of a large number of European and American orders to Southeast Asian textile major countries in the fourth quarter of 2021, Chinese textile companies and traders have been purchasing 2021/22 U.S. fine cashmere in the past month. Enthusiasm for cotton has declined compared with October and November, but inquiries and contracted imports of American Pima cotton, Israeli PIMA, Egyptian Giza 86/Giza 88, etc. have been relatively strong.
According to statistics from the United States Department of Agriculture, in the week of December 17-23, 2021, the net contract volume of U.S. Pima cotton was 1,610 tons, an increase of 37% compared with the average of the previous four weeks. Among them, China’s contracted volume accounted for 61%, affected by the fine-staple cotton period. The current large fluctuations have little impact.
Judging from the survey, as of now, there are very few long-staple cotton stocks in China’s main ports in 2019/20 and 2020/21. Traders are interested in American Pima cotton (including SJV Pima cotton) and Israeli long-staple cotton (2020/21). Year), there is a strong sentiment of being reluctant to sell and waiting for the price. The customs-cleared SJV PIMA 21-2 48 (strong 29GPT, horse value G5) is stable at around 57,000 yuan/ton, which is the same as the inner warehouse 3137 (strong) in Henan, Shandong, Jiangsu and other places. 38-39CN/TEX) The price difference between Xinjiang cotton quotations still reaches 8,000-10,000 yuan/ton.
Why do Chinese buyers have a high fever over the contract purchase of high-priced Pima cotton? The reasons analyzed by the industry are as follows: on the one hand, not only the output of Xinjiang long-staple cotton in 2021/22 has declined, but also from the public inspection results, the grades are mainly 31 and 41, and 21 and 11 are very rare; in addition, the breaking ratio strength has reached The ratio of 40CN/TTEX and above is low, and it is difficult to spin high-count combed and carded yarns with cotton (a certain proportion of Pima cotton is needed for cotton blending); on the other hand, mid- to low-end European and American orders are returning to India, Bangladesh, Vietnam, etc. High-end, high-value-added orders from various countries are restricted by the U.S. government’s bill prohibiting the import of Xinjiang-related products. Therefore, purchasing American Pima cotton, Israeli PIMA, Egyptian Giza cotton, Sudanese and Peruvian Pima cotton will be an effective way to respond.
</p
