According to feedback from some cotton traders and cotton textile companies, in July, compared with the domestic cotton spot market, which is “tepid and weak”, the July/December shipping schedules of foreign cotton from various origins are in full swing (2020/ The shipping schedule of US cotton in 2021 is concentrated in January/March, while the quotation of new cotton in India in 2020/21 has not yet started pre-sale), mainly 2019/20 US cotton, Brazilian cotton, Indian cotton, West African cotton, Australian cotton, etc. (There are very few Central Asian cottons such as Uzbek cotton); 2020/21 Brazilian cotton, Australian cotton, Argentine cotton, Mexican cotton, etc. (Argentine lint length is generally concentrated in 1-1/16~1-1/8, with strong 28GPT and Below, the indicators and spinnability are slightly lower), and the overall performance is that there are many places of origin, large quantities, and mixed quality.
Textile companies in Henan, Shandong and other places said that currently, international cotton merchants and large import companies have a variety of cargo resources, and the grades and grades are also very different, which feels a bit overwhelming. On the one hand, the cotton import quota within the 1% tariff is relatively scarce, and good steel must be used on the cutting edge. Therefore, the planned procurement focus is still on high-quality Australian cotton, American cotton, and Brazilian cotton; on the other hand, although the main contract price of ICE continues to be at 62 US dollars, Consolidating above cent/pound, most international cotton merchants are not willing to adjust the basis of Brazilian cotton, Indian cotton, and US cotton (West African cotton bucked the trend and increased the basis). However, due to the appreciation of the RMB, the exchange rate exceeded 7, and there is no need to sign a contract. Bonded cotton and cargo have a certain stimulating effect.
From the survey, the net weight of US cotton 31-3-36 (strong 28GPT) cleared by Qingdao Port on July 14-15 was quoted at 13100-13150 yuan/ton; the net weight of M 1-1/8 Brazilian cotton The quoted price is 12,500-12,600 yuan/ton; while the quoted price of Indian cotton M 1-5/32 is 12,000-12,200 yuan/ton, and the price difference between the three remains relatively stable; however, although Indian cotton has an advantage in price, due to large impurities, There are many foreign fibers and poor consistency, so it has not attracted the attention of domestic cotton companies. “Although the price is cheap, the quality is not good” are the main characteristics of Indian cotton in the past two or three years.
A trader in Zhangjiagang said that the focus of procurement and operation in 2020/21 will still be Brazilian cotton, American cotton and a small amount of West African cotton (Australian cotton has high prices and few customers but is relatively stable), and try not to touch or Avoid Indian cotton or cotton from other small-producing areas. First, there is no guarantee of delivery; second, there is a big difference in quality; third, it is inconvenient for domestic textile companies to distribute cotton and do not recognize commodity inspection indicators. </p
