As of the end of July, the RMB quotations for bonded cotton at ports are still mainly based on the buyer bringing his own 1% tariff quota for customs clearance. A small number of traders have quotations for buyers bringing their own sliding quasi-tariff cotton import quota for customs clearance. Under the two quotas, The prices are not much different, with the price under sliding tax slightly higher at 200-300 yuan/ton.
Currently, the RMB quotation of Huangdao Port’s India CCIM1-5/32 with its own 1% tariff is 15,700-15,900 yuan/ton (including the fixed price), while the RMB price with its own sliding tariff quota is 16,000-16,150 yuan/ton; bonded Brazilian cotton M 1 1/8 is quoted at 16,400-16,600 yuan/ton under 1% tariff; RMB quoted price with sliding quasi-tariff clearance is 16,700-16,850 yuan/ton. Industry analysis shows that the import quota of 700,000 tons of non-state-owned cotton with sliding quasi-tax is not issued in one go, but is issued in batches and successively, and only 300,000 tons of quotas are imported without restrictions on trade, which has little stimulating effect on the spot circulation market.
From the survey, as the Zheng cotton CF2109 contract broke through 17500, 17800 and other integer marks, in addition to the relatively active “fixed price” transactions of port customs clearance foreign cotton, basis sales and point price transactions were deserted. ; In September/December, Brazilian cotton (2020/21 new cotton) and port bonded US cotton, Brazilian cotton, Australian cotton, etc. have received attention, and inquiries have increased significantly compared with May/June. First, according to feedback from cotton textile mills, in 2021 The annual sliding quasi-tariff quota is valid until December 31 and cannot be extended to the end of February 2022; second, some large and medium-sized textile companies are worried about the output and quality of Xinjiang cotton in 2021/22; third, the monetary policy in the second half of 2021 is expected to continue to With a certain degree of marginal relaxation, the RMB exchange rate is facing great depreciation pressure; fourth, whether under the current 1% or sliding tax rate, foreign cotton prices are highly competitive. According to traders’ quotations, the current shipping schedule of Brazilian cotton M1-1/8 (strong 28GPT) in July/December has a basis difference of 9-10 cents/pound (ICE2112). The net weight cost of direct import under 1% tariff is about 15550-15750 yuan. / ton; the net weight cost of direct import under the sliding tax is about 15,950-16,200 yuan/ton (the price difference is slightly larger), which is lower than the “Double 28” Xinjiang cotton quoted by Shandong, Henan, Jiangsu and other inland warehouses, which is 2,000-2,500 yuan/ton. </p
