Affected by the plunge of ICE cotton futures on July 19, the ON-CALL point price contract was quickly traded, and some bonded cotton with pending orders was also “swept out”. Inquiries and transactions were more active than in previous days.
A cotton trading company in Qingdao stated that due to the lack of accurate information on the issuance of sliding tax quotas, 1 % tariff quota is “hard to get”, so since July there are more and more resources to quote RMB prices for bonded cotton spot goods in major ports in China (buyers are required to bring their own 1% quota for customs clearance), customs clearance of Brazilian cotton, Indian cotton, West African cotton Cotton stocks continue to decline, and quotations are low.
Industry analysis shows that although cotton spinning mills and traders are paying more attention to and purchasing cargo and bonded foreign cotton after the external market fell sharply, the sliding tax quota has not yet been lowered. The CF2109 contract of Fa and Zheng cotton fell below 16,500 yuan/ton and the rotation of reserve cotton was proceeding in an orderly manner. Therefore, in addition to the rush transaction of the ON-CALL contract, Chinese buyers were still slightly cautious in purchasing foreign cotton quoted in US dollars.
It is understood that the current RMB quotation price difference of bonded Brazilian cotton and Indian cotton in Qingdao, Zhangjiagang, Shanghai and other ports is very large, reaching 400-600 yuan/ton. Specific quality indicators, impurities contained There are also some differences. It is recommended that buyers go to the warehouse to view bulk goods and take samples for inspection.
For example, on July 19-20, Huangdao bonded Brazilian cotton M 1-1/8 RMB was quoted at a low price of 15,150-15,200 yuan/ton (the buyer needs to bring his own 1% quota Customs clearance); the higher quotation is 15,700-15,800 yuan/ton; the bonded Indian cotton M 1-5/32 yuan quotation is also from 14,600-15,050 yuan/ton (the buyer brings his own 1% import quota), and the price difference is also very large.
Some cotton-related companies said that mainly due to various factors such as different contract procurement costs, different financial conditions of cotton companies, different specific batches/indicators of lint, buyers shop around or even Shopping around is common. </p
