According to quotations from cotton traders in Jiangsu, Zhejiang, Shandong and other places, the fixed prices of Egypt’s GM 1-9/32 (strong 40-43GPT) and GM 1-3/8 (strong 43-45GPT) for the January/March shipping date in the past two days have respectively reached 276-277 cents/pound, 281-282 cents/pound, the net weight cost of direct import under 1% tariff or sliding tax is 43050-43150 yuan/ton, 43830-43930 yuan/ton; while in January and March The shipping date of US cotton SJV 21-2 46/48/50 (strong 40GPT) net weight is as high as 338-342 cents/pound, and the direct import cost under 1% tariff or sliding tariff reaches 52,450-53,250 yuan/ton.
As of now, the supply of bonded and customs-cleared long-staple cotton in China’s main ports in 2019/20 and 2020/21 is not only very small (including Egyptian Giza 86, Giza 88, Giza 90 and Egyptian PIMA cotton), but also quoted SJV Pima Cotton 21-2 48 traders’ quotations even exceeded 59,000 yuan/ton. It is common to ask for prices and try to “stuck” the price.
Judging from the survey, on November 23-24, the fixed price of 3138 (Qiang 40-41CN/TEX) and 3136/3137 (Qiang 39-40CN/TEX) in regulatory warehouses in Aksu, Bachu and other places in Xinjiang was concentrated at 44,000 yuan/ton, 42,000-43,000 yuan/ton (the difference in weight and net weight prices needs to be taken into account), and under the premise of import quotas, the price difference between Egyptian long-staple cotton and Xinjiang long-staple cotton is not outstanding, but it is significantly lower than SJV Pima cotton cargo and customs clearance spot.
The reasons for the high quotation of US cotton SJV Pima cotton are as follows:
First, in 2021/22, not only the planting area of SJV Pima cotton has dropped sharply year-on-year (a drop of more than 30%), but the weather has been very unfavorable. U.S. cotton exporters, international cotton merchants, etc. generally judge that the total output of long-staple cotton has dropped by more than 40% year-on-year. %; second, since 2020, developed economies such as the United States and Europe have adopted ultra-loose monetary policies in response to the epidemic and the rise in commodities. The public’s consumer demand for high-end, high-value-added cotton textiles and clothing has rebounded retaliatory in the post-epidemic era, and in the long run The consumer demand for velvet cotton is very strong; third, the U.S. dollar index continues to rebound in the second half of 2021, and has recently risen to above 96. It not only hit a new high for the year, but also returned to the level of July last year, resulting in continued U.S. dollar quotations for upland cotton and long-staple cotton. In an upward channel, the market is easy to rise but difficult to fall.
</p
