Imports Of Cotton Increased By 60% In June, And Port Stocks Continued To Climb.

With the announcement of China's cotton and cotton yarn imports and textile and garment exports in June, the industry generally felt that "joy is not enough, and wind direction is sudden."

First, China's cotton imports continue to be amazing. In June, a total of 160 thousand tons of imported cotton were imported, a significant increase of 59.5% over the same period last year. In 2019, 1-6 months in 2019, China imported 1 million 180 thousand tons of cotton, an increase of 72.54% over the same period last year. Not only Vietnam yarn, India, Pakistan, Indonesia and other places cotton yarn imports also declined as a whole; three, in June, China's textile and clothing imports fell 10.7% year-on-year. With the full fall of import volume, the impact of Sino US trade war has deepened, and the pressure on import and export production enterprises and foreign trade companies has become increasingly prominent.

Although the import of cotton is very powerful in June, most trade enterprises and middlemen said that the signing of contracts was mainly from May to mid June. On the one hand, textile enterprises directly received goods from international cotton traders and foreign exporters, and then arrived at customs clearance. On the other hand, they were mostly shipping at spot or 6/7 months. Due to the "countdown" of cotton and Australian cotton listed in 2019 in Brazil, shipments and exporters had a relatively large discount rate (there was also a downward trend in quality indicators). Therefore, shipments of bonded cotton in China's main ports, and customs clearance of cotton (goods belonging to cotton traders or textile mills) were not fast enough, and some cotton enterprises increased their pressure.

A cotton trader in Qingdao said that at present, the port of Qingdao, Zhangjiagang, Shanghai and other ports bonded and customs clearance total cotton volume of about 1800 tons, for a few days, no deal, no shipment phenomenon is not uncommon. First, affected by the ICE main contract breaking down 70, 65 or even 63, the price of bonded cotton dollar is very heavy, the traders' mentality is somewhat unbalanced, the more they fail to sell, the two is the strong competition of Xinjiang cotton's "point price" sale and national cotton storage in 2018/19. Some institutions and international cotton traders statistics and estimate that by the end of July, cotton stocks in Qingdao port reached 28-30 tons, and cotton stocks in Zhangjiagang also amounted to nearly 80 thousand tons.