According to the survey of cotton textile enterprises in Shandong, Jiangsu and Zhejiang, the willingness to increase foreign cotton procurement (including ship cargo, bonded cotton and customs clearance cotton) before the Spring Festival is generally weak, and the main resource is to buy RMB at a price as you use it. With the strong rebound of ICE cotton futures in the past two trading days, the inquiry/purchase of American cotton, Brazilian cotton and Australian cotton quoted by cotton enterprises/middlemen in US dollars has also decreased.
A medium-sized cotton trading enterprise in Qingdao said that, because the increase of Zheng Mian’s main contract was significantly lower than ICE, the competitiveness of RMB resources at the basis price and Buy It Now price has been improved, and the direct import cost under the 1% tariff of bonded cotton has been increased, which is more likely to be concerned and favored by cotton textile enterprises with traceable orders and rigid demand.
According to the traders’ quotation, on December 1, the quotation of bonded Brazilian cotton M 1-1/8 in China’s main ports was concentrated at 103-105 cents/pound, and the net import cost under 1% tariff was about 17850-18000 yuan/ton. However, the RMB quotation of customs clearance Brazilian cotton M 1-1/8 was mostly 17400-17600 yuan/ton, and the upside down price was 200-500 yuan/ton; The quotation of port bonded American cotton 31-3/31-4 36/37 is concentrated at 108.50-110.20 cents/pound, and the direct import cost under 1% tariff is about 18650-18950 yuan/ton. Qingdao port has cleared customs with the same quality index of American cotton, and the quotation is 18400-18600 yuan/ton, but also 200-500 yuan/ton. For textile enterprises whose production and sales of cotton yarn are basically flat, or even slightly upside down, and the inventory rate of gauze is rising, the impact of cost is more prominent.
It is also understood that since late November, the port’s non bonded cotton inventory has increased compared with the first half of the year (but the total amount is still not high due to the low base), and Brazilian cotton and American cotton have increased slightly. On the one hand, the foreign cotton transactions and shipments in October and November were concentrated in customs clearance tax, and the inventory continued to decline. In addition, the RMB exchange rate has increased from devaluation recently, and a few traders with quotas have tightened customs clearance sales; On the other hand, considering the timeliness of cotton import quotas, some textile enterprises have improved the clearance of bonded cotton.
Post time: Dec-05-2022