Imported cotton spot cuts foreign business

It is reported that on November 1, some domestic cotton trading enterprises Qingdao Port, Zhangjiagang EMOTM grade US cotton, S-6 and M grade West Africa cotton (mainly cotton in Burkina Faso, Mali) have appeared 18,400 yuan / ton and 18,700 yuan. / Ton of quotes. A major international cotton trader also reduced the price of domestic cotton traders' search for 2010/11 Indian cotton to 18,200 yuan/ton, but the spot price of bonded cotton did not bring about an increase in sales, mainly due to the domestic high-grade cotton price in October. Since the second half of the year, the official price of Grade 4 cotton has dropped to 18,000-18200 yuan per ton. The 2010/11 Indian cotton has no advantage in terms of price, intrinsic quality and consistency of supply.

An Australian cotton trader said that since the end of this week, not only has the port Australian Cotton spot inquiry and stocks been reduced, orders for November and December to Hong Kong and Macau have also declined significantly. It only traded 400 tons on the 1st, mainly in Shandong and Jiangsu. Companies are worried that cotton import quotas will be rejected before they can place orders. According to the survey, the current black market prices for 1% tariff quotas and sliding tariff quotas are 450-500 yuan/ton and 700-800 yuan/ton respectively, but very few cotton spinning factories are sold.

On November 1st, there was little difference between the 2010/11 US cotton, Australian cotton, Indian cotton and West African cotton prices for all international cotton traders arriving in Hong Kong in November. The intention of cotton traders seeking to empty Chenmian cotton stocks before the end of the year was obvious, but The difference between Indian cotton and West African cotton and the same grade Australian cotton and Central Asia cotton reached 10 cents/pound or more. According to the analysis of the two foreign companies, from the perspective of orders for cotton companies and traders in China this year, high-grade US cotton and Australian cotton are the focus of signing, although India's cotton production in 2011/12 and its intrinsic quality are good. Many domestic cotton mills Also very concerned, and the Indian government has announced the release of exports in the new year, but Chinese enterprises are still very cautious in purchasing far-month Indian cotton. Large companies mainly operate through several large international cotton companies, and Indian cotton processing companies or traders are not In the case of lint stock entering the bonded area, domestic cotton companies will not easily place orders.

As the spot price of domestic cotton continued to fall, on the 1st Zheng Cotton ** CF1205 dropped to less than RMB 20,300/ton, and the order situation of Chinese textile enterprises in November and December was not optimistic. Considering the warehousing cost and capital withdrawal, some foreign companies The plan is to slow down shipments during January-March 2012, and reduce the number of bonded cotton according to customer order shipments. Currently, the cotton trader's main concern is the issue of the amount of state storage and import quotas for 2011/12. Since the collection and storage will be completed by the end of March 2012, if the reserve volume reaches more than 2 million tons, foreign investors will still have a 5-8 month squeeze. Opportunities to enter the Chinese market; cotton textile companies expect no significant improvement in orders before March and April, and cotton consumption. From the perspective of protecting cotton farmers' enthusiasm for cotton planting, the increase in slippage tariff quotas is likely to be pushed into April and May. after.