According to feedback from cotton traders in Zhangjiagang, Qingdao and other places, since early and mid-May, the inquiry and transaction situation of bonded and customs-cleared Brazilian, American cotton and a small amount of Indian cotton has rebounded from the bottom in March/April (India The supply of cotton S-6 1-5/32 and S-6 1-1/8 is very limited). Some domestic cotton textile enterprises and middlemen have replenishment needs, but they still buy as they are used, place materials according to orders, and maintain Mainly production.
Overall, small and medium-sized traders’ cotton inventories, cash flow pressures, and comprehensive cotton import costs are still at high levels; in addition, some large cotton companies are rushing to free up storage capacity for the U.S. cotton arriving in Hong Kong in June/July. Accelerate the withdrawal of funds and significantly reduce the sales basis of cleared US cotton, Brazilian cotton, West African cotton, etc. (CF2009+ basis or CF2007+ basis), attracting domestic buyers. Therefore, small and medium-sized cotton companies are faced with “attacks from above and below, and are attacked from both sides” – Either passively follow large companies to cut prices and sell goods (losses are generally 1,000-1,500 yuan/ton); or they insist on raising prices, preferring shortages to excess, but it is basically difficult to ship goods in the short term.
From the survey, in the past two days, the RMB quotations of Brazilian cotton M 36 (strong 28GPT) and ME 31-3 36 (strong 28-29GPT) were 12220-12250 yuan/ton and 12620-12650 yuan respectively. / ton; while Indian cotton S-6 1-5/32 (strong 28GP) is quoted at 11,650-11,700 yuan/ton, and the price difference with US cotton ME 31-3 widens to nearly 1,000 yuan/ton; while Indian cotton M 1- 5/32 has attracted the attention of some domestic enterprises spinning 21S-40S medium and low yarns.
A cotton company in Qingdao said that in May, some international cotton merchants and imported cotton companies sold 2017/18 and 2018/19 American and Indian cotton at low prices (low horse value, poor length) , Qiangli 26-28GPT), because the quotations in US dollars and RMB are significantly lower than the 2019/20 new cotton at the port, some small and medium-sized yarn mills inspect the goods, take samples and test them, and place orders.
Several cotton textile companies in Jiangsu, Henan, Shandong and other places have reported that recently, international cotton merchants and large trading companies have released US cotton for 2019/20 (including spot and July/August/September shipping schedules), The quotations for Australian cotton shipments from May to September in 2020 have increased significantly, but US cotton is not only dominated by SLM or 41-4, 42-5, 41-5, 51-4, etc., but also accounts for less than 1-1/8 length. Relatively high, so it is not attractive to yarn mills and middlemen; although the SM, GM, and M grades of Australian cotton in May/September 2020 account for more than 85%, the quotation is higher than that of the same quality US cotton 9-11 US cents/pound, which is higher than SM 1-5/32 Brazilian cotton 10-12 cents/pound, which has been criticized by buyers. On May 25, Qingdao Port quoted 77.50-80.50 cents/pound for 2020 Australian cotton SM 1-5/32 for the May/September shipping date. </p
