Foreign Cotton Base Loose, Textile Enterprises Call For Additional Quota

 

According to the feedback from cotton trading enterprises in Qingdao, Shanghai, Zhangjiagang and other places, due to the fact that the main contract of ice cotton futures has continued at 85-88 cents / pound since early March, the signing and transaction of cotton and ship cargo outside the port has slowed down significantly compared with January and February, the depreciation of RMB and the tight import quota of 1% tariff, and other factors have affected some foreign enterprises and cotton enterprises, such as American cotton, Brazilian cotton, etc The quotation basis of West Africa cotton showed a slight loosening and correction trend. Among them, Brazil cotton and India cotton basis showed relatively strong performance, and the trading space was relatively limited, while the basis of 31-3 / 31-4 / 41-4 / 41-3 middle and high-grade American cotton decreased slightly.

 

A trader in Zhangjiagang said that at present, the basis difference of US cotton shipping, bonded and customs clearance cotton was temporarily reduced. On the one hand, the number of American cotton arriving in Hong Kong and put into storage in January / 2 / March was relatively large (mainly new cotton in 2020 / 21), and the storage capacity was very tight; in addition, the inquiry and shipment of bonded and customs clearance cotton was relatively light, and the pressure of traders was rising;

 

On the other hand, supported by the US cotton fundamentals, the introduction of the US $1.9 trillion economic stimulus package, and the high-level meeting between China and the United States on March 18-19, the US cotton base gap is obviously high, and the offer has thrown Brazilian cotton and Indian cotton out of several streets, thus the competitiveness of American cotton is insufficient. March 16-17, Qingdao port (601298) US cotton spot 31-3 37 (Qiangli 29gpt) net weight quoted 16700-16900 yuan / ton, while Shandong, Henan and other inland warehouses "shuang28" Xinjiang cotton public weight quoted 16250-16350 yuan / ton (due to differences in quality indicators, impurities, etc.), slightly more than the U.S. cotton prices for customs clearance; in addition, a few cotton import and export enterprises reported that the central bank credit had stabilized and tightened after the Spring Festival, and the L / C purchase ship was 90 days Cotton outside the goods is more or less affected.

 

Some textile enterprises in Jiangsu, Shandong and other places appeal to the relevant departments to issue additional quota of cotton import with sliding tariff in 2021 as soon as possible, which will help cotton enterprises to sign contracts for foreign cotton at low price and supplement raw materials. First, the main contract of ICE Futures in March / April still has the opportunity to fall back to 80-85 cents / pound, giving buyers the opportunity to get goods in the market; second, the 1% tariff import quota is scarce, and it is concentrated in the hands of large and medium-sized cotton enterprises; third, the overall decline of Xinjiang cotton grade, quality and other indicators in 2020 / 21 is relatively obvious, and the issuance of import quota in advance is conducive to textile and clothing enterprises to receive orders and avoid risks. With the "turning point" of the global epidemic situation, the acceleration of vaccination and the continuous easing of monetary policies in various countries, the demand for medium and high-grade textile and clothing is rebounding in retaliation (although a large number of orders from Europe and the United States are transferred to Southeast Asian countries, but due to the limitations of equipment, technology, personnel level and supporting capacity, high-end product orders still return to China); fourthly, the US government's import ban on Xinjiang cotton products Not withdrawn.