According to feedback from cotton traders in Henan, Zhejiang and other places, as the Zheng cotton CF2109 contract rebounded from 15,300 yuan/ton to 15,965 yuan/ton since late May, the cotton spot inquiry and transaction atmosphere peaked and fell. The shipments of some high-grade, high-quality and high-priced Xinjiang cotton resources have become colder. Some textile companies that planned to moderately expand raw material inventories in early June have postponed their procurement progress. “Buy as you use” and small batches are still the main operations; and cotton spinning mills are more interested in Xinjiang cotton of medium and low quality and medium and low indicators. Some.
A medium-sized textile company in Shandong said: On the one hand, as the issuance of 700,000 tons of sliding-duty cotton import quotas in 2021 has entered a “countdown”, foreign exchange quotations in US dollars at the port have begun since last week. Cotton inquiries and transactions are relatively active (including bonded and shipped goods), and the procurement focus is on M 1-1/8 and above high-quality US cotton, Brazilian cotton, and West African cotton. The procurement of medium and low-quality Xinjiang cotton is mainly for spinning high-count yarn It is used with cotton; on the other hand, the current price difference between low-quality Xinjiang cotton and high-quality and high-index Xinjiang cotton is relatively large. Even if it meets the conditions for generating warehouse receipts for Zheng cotton, the discount is relatively high and is mainly stored in Xinjiang’s supervision warehouse, so the ginner is more Prefer spot sales to speed up the return of funds.
From the survey, from June 7th to 8th, the 2020/21 Xinjiang machine-picked cotton grade 31 “double 28” weight quotation in Jiangsu, Henan and other inland warehouses was 16150-16350 Yuan/ton (varies due to different specific batch standards, original order); and the import cost of the 2020/21 US cotton EMOT 31-3 36/37 sliding tariff in the bonded area is about 15,500-15,700 yuan/ton (net weight settlement), Xinjiang cotton is 700-1,000 yuan/ton higher than the same indicator of US cotton; while the net weight import price of bonded spot M 1-1/8 Brazilian cotton under the sliding tax is about 15,100-15,300 yuan/ton, which is 1,000-1,500 yuan/ton lower than Xinjiang cotton. Yuan/ton; therefore, some cotton-related companies said that it is not uncommon for some cotton spinning companies to “overdraw” the sliding quasi-tariff quota contract to purchase medium and high-quality Brazilian cotton and U.S. cotton; and as the Australian cotton basis continues to decline in 2020, the U.S. dollar The quotations are gradually moving closer to US cotton, and Chinese buyers’ attitude towards Australian cotton has also bottomed out, but it still needs to be seen whether the transactions can be restored. </p
