According to feedback from cotton trading companies in Qingdao, Zhangjiagang and other places, since early December, the main ICE cotton futures contract has recovered 105 cents/pound and 107 cents/pound, and the oscillation range of the Zheng cotton CF2205 contract has risen to 19,500-20,000 yuan/ton. Due to the impact of the epidemic (the basis difference between domestic and foreign cotton merchants and importing enterprises has not been reduced), the inquiry/transaction of bonded cotton and customs clearance cotton at the port is weaker than that in November, especially the 2020/21 Brazilian cotton with high quotation and low spot quantity. Shipments are relatively deserted; while Indian cotton, although the quantity of bonded and customs clearance in China’s main ports is large, and buyers have sufficient space to choose goods, it is mainly old cotton in 2019/20 and 2020/21 (including CCI rotation resources), and there are obvious The situation of downgrading; coupled with the low “cost-effectiveness” compared with the state reserve Xinjiang cotton and 2021/22 real estate cotton, the Indian cotton transaction continues to be light.
Judging from the traders’ quotations, the fixed prices of Indian cotton M 1-5/32, Brazilian cotton M 1-1/8, and US cotton 31-3/31-4 36/37 were cleared at Qingdao Port on December 8-9. The prices are 20,800-21,200 yuan/ton, 23,200-23,500 yuan/ton, and 22,500-22,700 yuan/ton. The “inversion” range between Brazilian cotton and American cotton of the same quality and grade has further widened to 500-1,000 yuan/ton.
Cotton textile companies in Jiangsu, Shandong, Henan and other places said that in comparison, the current spot cotton at ports is more competitive than lint cotton from other origins, and the attention is also higher. However, due to traders’ 2020/21 US cotton sales It is almost coming to an end. There are many batches of cotton in Hong Kong, the grade and quality are relatively mixed, and the spinnability varies greatly. Therefore, it is only suitable for small-scale replenishment and is not suitable for large-scale procurement. The focus of attention and competition between buyers and sellers has shifted to the 2021/22 new cotton with shipping schedule in December/January/February/March.
Although the use period of the additional 700,000 tons of sliding tax quotas issued in 2021 has entered a “countdown” (according to the announcement, the sliding tax quota is valid until the end of December, and the 1% quota can still be extended to be used before the end of February 2022), on the one hand According to quotes from traders and international cotton merchants in November/December, the price of imports under the sliding quasi-tariff is almost the same as that under the 1% tariff (about 100-150 yuan/ton); on the other hand, the price of 400,000 tons of non-state-owned and processing trade has slipped. Quasi-tax quotas are not conducive to traders entering the market. Furthermore, some cotton sales companies only accept buyers bringing their own 1% tariff import quotas for customs clearance, and exclude the use of sliding tariffs. Therefore, the expiration of the quota use period will not stimulate the sales of bonded cotton.
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