According to the USDA report, the net contract volume of U.S. Pima cotton for 2020/21 in the week of March 5-11, 2021 was 1,588 tons, not only a 44% decrease from the previous week, but also a 40% decrease from the average of the previous four weeks. Cotton spinning mills and traders in India, China, Pakistan and other countries mainly purchase; while the Pima cotton shipment volume in 2020/21 is 5,375 tons, a significant increase of 130.09% from the previous week, with demand from buyers in India, China, Pakistan, Vietnam and other countries Strong. Cotton traders in Qingdao, Zhangjiagang and other places said that so far, the 2019/20 and 2020/21 SJV Pima cotton bonded and customs cleared in major ports in China are not only very small in quantity, but also foreign businessmen and cotton importing companies are almost all “fixed price” “Sale.
In 2020/21, the global long-staple cotton supply and demand gap is relatively large. As European and American orders returned to Southeast Asian countries in the fourth quarter of 2020, large-scale yarn mills in India, Pakistan, Vietnam and other countries have significantly increased purchasing demand for Pima cotton, Egyptian Giza cotton, Israeli long-staple cotton, etc., and have launched all-round cooperation with Chinese companies. Competition stimulates the price of long-staple cotton to continue to “open and move higher”. On March 18-19, the April/May shipping date of SJV 21-2 48/50 (strong 38/40GPT) from China’s main port was quoted at 189-191 cents/pound (the customs clearance price under 1% tariff exceeded 30,000 yuan/ton) , not only is it significantly higher than fine-staple cotton, but only a few international cotton merchants and large domestic import companies have spot futures “on the shelves”.
Textile enterprises in Jiangsu, Zhejiang, Shandong and other places have reported that since mid-March, the quotations of 3138/3139 (Qiangqiang 41-43CN/TEX) from regulatory warehouses in Aksu, Korla and other places have been stable at 23400- 23,800 yuan/ton; while the quotation of US Pima cotton 21-2 (strong 40GPT) in Qingdao Port in 2017/18 is as high as 28,300-28,500 yuan/ton (the SJV Pima cotton port in 2019/20 and 2020/21 is rarely in stock quotation), although the price is significantly higher than Xinjiang long-staple cotton, large and medium-sized yarn mills said that on the one hand, SJV Pima cotton’s various indicators from color grade to length, strength and other indicators are significantly higher than domestic long-staple cotton, and it is suitable for spinning 60S and above Count combed and carded yarn; on the other hand, the U.S. government has not lifted the import ban on Xinjiang cotton products. Some European and American brands and retailers still require China to provide “non-Xinjiang cotton” certification. Therefore, for mid-to-high-end, high-added products, In response to high-profit orders, domestic textile and clothing companies purchase SJV Pima cotton, Egyptian Giza cotton, etc. </p
