According to the requirements of relevant departments, starting from October 8, Chinatex Group/China Cotton Group and others have successively released imported cotton resources to the market (both are “textile special events”) to increase market supply and meet the actual consumption of cotton-using enterprises need.
According to statistics, from August 8 to 12, the daily volume of imported cotton by a Chinese-prefixed company was around 10,000, and the daily trading volume was 6,800-7,000 tons, which was somewhat lower than expected. Traders in Qingdao, Zhangjiagang and other places said that the basis purchased by several companies with Chinese prefixes was relatively low and did not meet price expectations. Therefore, they only planned to ship a small amount or suspend sales and wait and see. In addition, as of mid-October, the utilization rate of the additional 700,000 tons of sliding tax import quotas issued in 2021 is not high, especially the 400,000 tons of processing trade quota. Therefore, cotton trading companies are still waiting for terminals such as cotton textile companies to place direct orders. Get the goods.
Several large-scale textile enterprises in Jiangsu, Shandong and other places said that several companies with Chinese prefixes adopt basis sales (CF2201 + basis), but the basis is almost 100% based on Zheng Miancang Single, some are on the high side; the quotations of some high-grade, high-quality US cotton/Brazilian cotton/Indian cotton resources are not much different from the current spot market prices in China’s main ports, and the competitiveness of the imported cotton resources is not outstanding, so we call for relevant investment Enterprises should reduce the basis difference and appropriately transfer profits to cotton textile mills and middlemen, so as to achieve the goal of stabilizing the cotton futures market and meeting the needs of cotton-using enterprises as soon as possible.
Some cotton-related companies have judged that as of the end of September, the total volume of bonded cotton (passed + uncleared) in China’s main ports may be 500,000-550,000 tons, and they do not rule out policy changes. There is a plan to “accept everything as ordered” for medium and high-grade foreign cotton, so the number of sliding tax quotas for the second issuance may be close to this number, but the final utilization rate still needs to be observed. </p
