Imports Of Long Staple Cotton Market Downturn, Traders Face Multiple Pressures

< p > 8-11 February, a foreign merchant Qingdao Port Bonded spot quotation (all indicators allow 5% tolerance):1, 2013/14 SJVPIMAGC1-1-48 (with a maximum of 20% of 46 length) G5, SJVPIMAGC2-2-46 (up to 5% of 44 length) G5 are 196.8-197 cents / lb, 195.8-196 cents / lbs; 2, 2012/13 year SJVPIMARECAP75230 and 2012/13 offer 184 cents / pound, 186 cents / pound, respectively.

The PIMA quotation for February is usually 1-2 cents higher than the spot price, mainly considering that the main contract of ICE futures still has a driving force of 90 cents, and the cost of shipping and occupying funds has risen to varying degrees since 2014 January.

It is understood that although some foreign businessmen have vigorously deployed 2012/13 and 2013/14 cotton and other countries' long staple cotton stocks, the number of arrivals in February has not increased substantially, and foreign staple cotton stocks are generally concentrated at 400-1000 tons.

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In the first ten days of February, in the first ten days of February, domestic a href= "//www.sjfzxm.com/news/index_c.asp" > long staple cotton < /a > market supply and demand performance was "not warm and not fire". The quotation is running weak. The 137 and 237 varieties of Xinjiang agricultural first division in Shandong, Henan, Hebei and Jiangsu warehouse offer quotation of 34800-35000 yuan / ton and 34000-34200 yuan / ton, Awati local enterprises long staple cotton quotation is 200-300 yuan / ton lower than that of the Corps.

Although the opening rate of large and medium-sized cotton mills in Shandong, Jiangsu, Hebei and other places is not high enough, the effective purchasing support can not be formed before the end of February, while the import of long staple cotton prices is lower than that of Xinjiang long staple cotton by 3000-4000 yuan / ton (excluding the quota pfer cost), but the quota resources are in the hands of large and medium-sized cotton spinning enterprises, and the processing trade is more than 2/3. Besides, in the second half of 2013, the pace of RMB appreciation has accelerated. The export of high count yarn, high density and high density grey cloth has been squeezed by two ends. Southeast Asia, such as India and Pakistan, < a href= "//www.sjfzxm.com/news/index_c.asp" > cotton spinning "/a", the major powers are catching up, the demand of the big consuming countries such as Europe and the United States continues to be weak, and the import policy gives Chinese competitors a "green light". The main reason for the market downturn is that it has not yet passed the first month of fifteen.

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< p > according to the two importers of Jiangsu and Zhejiang, 600-800 tons of American PIMA, Israeli ACALA and a small amount of gitzha 86 were purchased by customs clearance before December. The purchase price reached 33000 yuan / ton. At present, the price accepted by domestic cotton mills and middlemen is only 33200-33800 yuan / ton. If importers do not have any profit in calculating warehousing and financial charges, the import space for long staple cotton quotations is very limited.

Recently, the stock of Xinjiang's long staple cotton has increased continuously in the 2013 year of the mainland warehouse. Compared with the corps and foreign merchants and importers, the operation of Awati local ginning plants is more flexible, and the operation of receiving or partly owing credit has increased, which has caused an impact on the shipment of imported long staple cotton.

In addition, due to the overall tightening of credit in some local commercial banks, some small and medium-sized cotton mills and importers have encountered difficulties in issuing letters of credit. Banks have increased their credit margins to 20%-30% in order to reduce risks and increase the cash flow pressure of import companies.

Chinese importers are more optimistic in their performance. On the one hand, Jisha cotton in the United States, Israel and Egypt is still more prominent in terms of "three silk", fiber length and strength. On the other hand, the import of long staple cotton is settled by net weight, while domestic long staple cotton is calculated at a fixed weight. The difference between the two is at least 600-800 yuan / ton, so on the surface, the price of the inner and outer long staple cotton is reduced to 500 yuan / ton, and the actual price difference is still over 1000 yuan / ton.

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< p > Shandong Zibo and Weifang textile enterprises reflect that since February 5th only a small part of large and medium size < a href= "//www.sjfzxm.com/news/index_c.asp" > spinning factory < /a > because of the relatively early arrival of workers and the relatively high rate of returning to the shop, they have started production in succession. Most of the small and medium size mills, weaving factories and garment factories are going to start effectively after February 15th. This year, the problem of "recruitment difficulty" in factories is more prominent. Enterprises say "no orders, no orders can be recruited", wages and other production costs are rising, the appreciation of the RMB continues to appreciate and the strong impact of cheap imported cotton yarn makes some mills face the situation of "loss of production without production".

Some foreign businessmen have analyzed that the supply and demand gap of China's long staple cotton will reach 100 thousand tons this year, which is obviously too optimistic. Since December, the production of C60S yarn and above yarn has been greatly reduced, and the gap has dropped to below 80 thousand tons. Therefore, under the premise that the domestic long staple cotton is dyspepsia, the import cotton distribution has been tightened, and the export of yarn and textile clothing is facing great changes, it is difficult to import the long staple cotton in the short term to break through the "bottleneck".

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