According to the feedback of cotton trading enterprises in Zhangjiagang, Qingdao and other places, after the Spring Festival, cotton textile enterprises, traders and others have increased their inquiries for cargo and bonded cotton, especially the Brazilian cotton and Australian cotton in 2021/22 received a little higher attention. However, because the downstream cotton enterprises are still in the state of resuming production, replenishment has not been effectively carried out, and the cotton import quota within 1% tariff of 894000 tons in 2023 has not been issued to enterprises, Therefore, although the cotton outside the US dollar quotation shows signs of recovery, the volume of trade has not increased significantly compared with that before the holiday. Among them, the US cotton in the January/February/March shipment is on the shelf, the quotation resources are too large (including the US cotton in 2021/22 and 2022/23), and the contracted sales are somewhat light.
A medium-sized cotton import enterprise in Changzhou, Jiangsu Province, said that due to the shock correction of ICE cotton futures in the past two trading days, the main contract in March fell below the 85 cents/pound mark, the industry chain’s strong expectation of the recovery growth of export orders for cotton textiles and clothing in 2023 and the countdown of the use period of the remaining 1% intra-tariff quota in 2022, the buyer’s current inquiry is based on spot shipments and bonded cotton, while the port clearance of American cotton, Brazilian cotton Indian cotton and others continued to rise due to the rebound of their quotations with Zheng cotton’s main contract (most traders did not adjust the basis), and the 1% intra-tariff quota in 2023 had not been issued, so the shipment was not smooth.
According to the quotation of some traders, the net weight of Brazilian cotton M 1-1/8 (strong 28-30GPT) customs clearance at Qingdao Port (601298) on January 30-31 was concentrated at 17200-17400 yuan/ton; M 1-5/32 (Powerful 28-30GPT) net weight at 17500-17700 yuan/ton; The net weight of American cotton 31-3/31-437 (strong 29-31GPT) was raised to 17850-18200 yuan/ton (lint in 2021/22). Textile enterprises in Shandong, Jiangsu and other places said that due to the impact of Zheng Mian CF2305 contract breaking through the 15000 yuan/ton and 15100 yuan/ton integer pass again and the recent continuous decline of cotton shipments in Xinjiang, the space for cotton negotiation outside customs clearance was generally narrowed to 50-100 yuan/ton, and some traders did not even give preferential treatment to small orders and new customers.
Post time: Feb-04-2023