Global Perspective: Pay Attention To The Weak Import And Export Of Imported Cotton Ports, And The Difference Between Internal And External Cotton Prices Slightly Expands

 

According to the feedback of some cotton traders in Jiangsu, Zhejiang, Shandong and other places, the bonded/customs clearance import and export of cotton in China's main ports has not been booming since late October, and the inquiry/transaction is mainly based on the basis price, and the RMB resource is slightly better than the dollar resource. On the one hand, affected by the decline of Zheng Mian's main contract since the middle of October, which is significantly higher than that of ICE cotton contract in December, the quotation of domestic and foreign cotton has narrowed significantly, and the competitiveness of imported foreign cotton has become weaker and weaker under the 1% tariff and sliding standard tariff; On the other hand, the sales of reserve cotton will be promoted in an orderly manner in 2023, and the cotton using enterprises will have reserves of imported cotton to "support the bottom" and can supplement the foreign cotton resources at any time. In addition, as the textile and clothing industry's export "golden nine and silver ten" came to an end, some cotton textile mills and intermediaries became more worried about the off-season, and cotton procurement was adjusted to "buy as you need, place orders as needed", so as to reduce the amount of raw materials that occupy working capital as much as possible, affecting the normal operation of enterprises.

From the quotation of some traders, the bonded Brazilian cotton M in Qingdao Port from October 26-27 1-1/8 (Qiangli 28/29GPT) net weight is 96.50-98 cents/pound, equivalent to 17000-17200 yuan/ton of import cost under 1% tariff; The import cost under sliding standard tariff is about 17140-17400 yuan/ton; On the 27th, Jiangsu, Shandong, Henan and other inland warehouses "Shuang 28" (or Dan 29, Dan 30) quoted 17350-17550 yuan/ton of Xinjiang machine picked cotton. Considering the difference in net weight and public weight settlement, the price of domestic and foreign cotton under sliding standard tariff was 300-500 yuan/ton, an increase of about 100 yuan/ton compared with the previous days.

A cotton enterprise in Zhejiang said that, in the past half month, except for the decline in the cotton cost performance ratio and the weak terminal demand restricting the shipment/contract signing, the wide fluctuations in the internal and external markets and the continuous substantial growth in cotton yarn imports on a year-on-year basis are also important reasons for the low activity of port cotton import and export. Moreover, some cotton mills reported that since October, the transaction price of domestic cotton yarn blended with American cotton, Brazilian cotton, Australian cotton and other cotton and Xinjiang cotton has continued to shrink, resulting in a decline in the production and sales rate of some enterprises specialized in imported cotton yarn in Jiangsu, Zhejiang and other places, and an increase in the stock accumulation rate. Therefore, the replenishment efforts have slowed down, and the wait-and-see mood is strong.