External Cotton: Demand Is Scarce, Supply Is Increased By &Nbsp; Spot Price Is Low And There Is No Turnover.

Recently, international

HSBC Holdings announced in May 23rd that HSBC's Chinese Manufacturing Purchasing Managers Index (PMI) was initially 51.1 in May, a slight fall from the HSBC China PMI final value in April, indicating that the domestic manufacturing boom was cooling down.

Meanwhile, the US real estate market is still in the doldrums, the recovery of the labour market is slow, the economic slowdown is continuing, and inflation has intensified in some European countries.

The above concerns aggravated the concerns of market participants.

Although the prices of SM, M grade cotton, cotton and Uzbekistan cotton in Qingdao, Shanghai, Zhangjiagang and other bonded areas have generally dropped to 26000-27000 yuan / ton interval (the buyers bring their own quotas) recently, cotton producers and traders in China are still on the sidelines, only interested in Australian cotton and Brazil cotton in the 3-5 months of 2012, but they also have many inquiries and fewer orders.

A foreign trader said that due to the weakening pressure on ICE futures, the export of cotton in India was variable. In addition, a small area of rainfall in the United States in the first few days accelerated cotton planting. Therefore, cotton producers actively implemented the pre contract, and the impact of domestic and foreign cotton prices fell sharply, and the number of domestic cotton mills and traders increased.

In May 23rd, the quotations of all cotton quotas were generally high. The main feature of the market was that there was almost no deal and the supply of goods increased.

Us EMOT SM and grade M cotton 6/7 month shipping price is still up to 183.6-183.9 cents / pound and 183-183.30 cents / pound. Under the sliding tariff, the port net weight pick up price is still 30750 yuan / ton and 30620 yuan / ton, but the actual domestic traders' paction price has dropped to below 28000 yuan / ton.

The price of West Africa cotton is 3-4 cents lower than the same grade cotton, India cotton and central cotton.

A large domestic trader said that in late May, the price of M grade cotton in Qingdao port was between 26500-27500 yuan / ton. On the one hand, it was concentrated in port in May. On the other hand, it was relatively short term capital pressure. Therefore, the price of M grade cotton spot was only 26000 yuan / ton (buyers with quotas and port pick-up), which was lower than the normal price of 500 yuan / ton, but the domestic cotton mills with inquiry and order were still not many, and the market wait-and-see sentiment was heavier.