The Price Difference Between Domestic And Foreign Cotton Expands, And It Is Difficult For Traders To Ship Awesome
According to the feedback from cotton traders in Qingdao, Zhangjiagang, Shanghai and other places, the main contract of ICE cotton futures broke 85 cents/pound and 88 cents/pound this week, approaching 90 cents/pound. Most of the traders did not adjust the quotation basis of cargo and bonded cotton; However, the panel price of Zheng Mian’s CF2305 contract continued to consolidate in the range of 13500-14000 yuan/ton, which led to a significant increase in the price inversion of domestic and foreign cotton compared with that before the middle of November and December. In addition, the import quota of cotton in 2022 in the hands of enterprises has been basically exhausted or it is difficult for enterprises to successfully “break through” temporary procurement (the validity of sliding tariff quota is up to the end of December). Therefore, the foreign cotton shipments quoted in dollars at the port are relatively cold, Some traders have not even opened for two or three consecutive days.
According to customs statistics, general trade accounted for 75% of China’s cotton import trade in November, 10 percentage points lower than that in October; The proportion of inbound and outbound goods from bonded supervision sites was 14%, up 8 percentage points from the previous month; The proportion of logistics goods in areas under special customs supervision was 9%, up 2 percentage points from the previous month. It can be seen that in the past two months, the import of sliding quasi tariff quotas and the import of processing trade showed a phased growth. Brazil cotton is in a period of short supply of American cotton because of its large shipment to the Chinese market in September and October; In addition, the quotation basis difference of Brazilian cotton in bonded and ship cargo in 2022 is 2-4 cents/pound lower than that of American cotton in the same indicator, which has a strong cost performance ratio. Therefore, the export growth of Brazilian cotton to China in November and December was strong, leaving American cotton behind.
A cotton enterprise in Zhangjiagang said that in recent days, cotton mills/middlemen in Jiangsu, Zhejiang, Henan, Anhui and other places, including Jiangsu, Henan, and Anhui, have significantly reduced their enthusiasm for inquiring about and getting goods from port cotton spot compared with the first half of December. In addition to the rise in ICE futures and low quotas, the increase in the number of workers infected with COVID-19 in many cotton mills and weaving enterprises in recent days and the serious lack of jobs have led to the decline in the operating rate of enterprises and the tightening of cash flow of cotton enterprises near the end of the year Pay close attention to the inventory of finished products. Moreover, the RMB exchange rate has recently changed from rising to declining, and the cost of imported cotton has continued to rise. As of December 19, compared with the last trading day in November, the central parity rate of the RMB exchange rate in December has risen by 2023 basis points as a whole, once recovering the 7.0 integer mark.
Post time: Dec-26-2022