According to feedback from large and medium-sized cotton textile enterprises and cotton traders in Jiangsu, Shandong, Henan and other places, since mid-January, they have received notices of receiving cotton import quotas within the 1% tariff in 2021. Some buyers are concerned about the 2020/ In 2021, attention has increased on shipments of U.S. cotton, Indian cotton, Brazilian cotton, West African cotton and bonded cotton; but overall, as the main ICE cotton futures contract continues to consolidate at a high level of 80-82 cents/pound, coupled with The 1% tariff quota in 2020 has been basically exhausted (can be extended to be used before the end of February 2021), and the additional 400,000 tons of sliding tariff processing trade quotas issued in 2020 are not attractive (special session for textile companies, the price after customs clearance is the same as that of domestic cotton) “Upside down”), so in the past half of the month, with the concentrated arrival of US cotton, Indian cotton, Brazilian cotton, etc. in the port in 2020/21 (traders have a relatively large quantity of foreign cotton in the December/January/February shipping schedule), the customs clearance of cotton has not It is relatively slow, causing the cotton bonded warehouse capacity in Qingdao, Zhangjiagang, Shanghai and other major ports in China to become increasingly tight.
A trader in Shandong said that on the one hand, there is a recent shortage of quotas within the 1% tariff. The remaining quotas of some textile enterprises and traders are relatively scattered, ranging from a few tons to dozens of tons, and one is 200 tons. The purchase contract needs to find ways to meet the quota; on the other hand, the main players of ICE have made continuous upward breakthroughs, while the basis differences of US cotton, Brazilian cotton, and West African cotton have remained strong. Export companies, international cotton merchants, etc. are more bullish on ICE. Therefore, Chinese textile enterprises and centers are more keen on purchasing customs-cleared foreign cotton at a “fixed price”. The quotations for US dollar shipments and bonded cotton are “lukewarm”, resulting in more inquiries and less delivery; some high-grade, high-quality, Inquiries and transactions for Brazilian cotton, Australian cotton, and American cotton with high water premiums are relatively light.
Judging from the survey, the 2019/20 spot US cotton 31-3 36 (strong 28-29GPT) quotation at Qingdao, Zhangjiagang and other ports on January 13-14 was 16,000-16,200 yuan/ton; Brazil The quotation of cotton M 1-1/8 has also reached 16,000-16,200 yuan/ton, and the two have been completely “in line”; and the Indian customs clearance cotton in 2019/20 has continued to be active since mid-December, so at present, regardless of basis sales or There are not many “fixed price” resources, and the quotation of M 1-5/32 has also risen to 15,300-15,500 yuan/ton. The price difference with US cotton and Brazilian cotton of the same grade and index has narrowed to 500-900 yuan/ton (compared to (previously reduced by 300-400 yuan/ton), so customs clearance of Indian cotton transactions and shipments have also slowed down in the past two days. </p
