According to the feedback of cotton trade enterprises in Qingdao, Zhangjiagang and other places, although ICE cotton futures have fallen sharply since October, and the inquiry and attention of bonded foreign cotton and cargo at the port have increased significantly (in US dollars), buyers are still mainly wait-and-see and just need to purchase, and the actual orders have not improved much. In addition, the non bonded cotton inventory that continued to decrease in August and September also rebounded recently, increasing the pressure on traders to ship.
A medium-sized cotton importer in Qingdao said that the inventory proportion of American cotton in China’s main ports in 2020/21 and 2021/22 has been rising for more than half a month (including bonded and non bonded), and some ports even reached 40% – 50%. On the one hand, the recent arrival of cotton from two major competitors in Hong Kong has not been effective. The shipment period of Brazilian cotton is concentrated in October and December; However, Indian cotton in 2021/22 is of “poor quality and low price”, which has been cleared out of the “shopping cart” by a large number of Chinese buyers; On the other hand, from the quotation point of view, since August and September, the quotation of Brazilian cotton for spot shipment and shipment has been the same as that of American cotton of the same quality, even 2-3 cents/pound.
According to the survey, the quality of export traceability orders of “Golden Nine Silver Ten” cotton textiles, cotton garments and other products is insufficient, especially in the medium and long term. Bulk orders, short orders and small orders make foreign trade companies/textile and clothing enterprises more inclined to purchase imported yarn from Vietnam/India/Pakistan for production and delivery. First, compared with the purchase of foreign cotton yarn, directly imported cotton yarn has the characteristics of low consumption, short capital occupation time and easy traceability; Second, compared with the re spinning of imported American cotton and Brazilian cotton, the imported cotton yarn has the advantages of low cost and slightly high profit. However, the products of small and medium-sized yarn mills in Vietnam, India, Pakistan and other countries also have the problems of poor quality stability, high foreign fiber bias and low yarn count (50S and above high count imported yarn not only has high price but also poor quality indicators, which is difficult to meet the requirements of cloth mills and clothing enterprises). A large cotton enterprise estimated that as of October 15, the total inventory of bonded and non bonded cotton in all major ports across the country was about 2.4-25 million tons; Since August, there has been a continuous decline, and it is normal for “less input, more output”.
Post time: Oct-24-2022