Imported Cotton Stocks Remain High, Traders Encounter "Front And Rear Attack"

At present, the import of cotton is very high in China. When the epidemic has not yet erupted outside China, the port can not get into it. In the latter part of the world, the global epidemic began to spread, and many countries adopted different levels of blockade to fight epidemics. Trade activities were therefore affected, and the amount of new cotton arrivals decreased significantly. But the goods are basically in a state of stagnation, and port warehouses are still storming.

From the current market situation at home and abroad, the trade enterprises are facing the predicament of "before the wolf has a tiger leopard". Since the beginning of this year, the price of New York stock market has been increasing. The focus of trading has fallen from about 70 cents in early January to the current 50.00-55.00 cents interval. By the deepening of the decline in cotton prices and the uncertainty of the post market volatility, some traders in early orders have paid several rounds of margin. In addition, enterprises ordered at the beginning of the year are also faced with the pressure of repayment of letters of credit. Second, the continued weakening of downstream demand and slow sales of cotton have aggravated the financial strain. First, the impact of the epidemic began in January, and production and life were affected. Downstream clothing sales missed the winter and spring, and domestic demand is still in a slow recovery stage. Since then, the outbreak of outbreaks in China has started in March. The blockade policy of different countries has a huge impact on trade, and the export orders of domestic textile enterprises are sharply reduced.

From the inventory quantity situation, as the downstream textile enterprises purchase intention is not strong, shipping speed is slow, the total domestic cotton imports inventory is above 500 thousand tons. According to statistics, Qingdao and its surrounding warehouses import more than 350 thousand tons of cotton stocks, and Zhangjiagang's stock is around 90 thousand tons. Other parts, including Henan and Tianjin, also have some stocks.

From the point of view of stock structure, Brazil cotton and American cotton are still the absolute main force, accounting for about 40% of the total, while others include India cotton, Australia cotton, Central Asian cotton, West African cotton and Sultan cotton, accounting for about 50% of the total; others include a small amount of Israeli cotton and Greek cotton.

From the quotation situation, the current grade US cotton basis price quoted in New York May contract rose 1100 points or so, the 5-7 month shipping price of Australia cotton new cotton price is around 2200, and the Brazil cotton quotation of shipment in the second half of August will be around 1000. In addition, it is worth noting that, by the extension of the India blockade period, it is reported that the India cotton shipping quotes have been suspended.

For the participants in every aspect of the industry chain, this year's winter is very long. "Living" has become the goal of 2020. For traders, it is also in the front and rear attack situation, on the one hand, the import terminal goods can not be shipped on time, on the other hand, sales side downstream textile enterprises are reluctant to purchase. On the whole, the market situation is basically in a difficult situation that wholesalers are forced to start retailing and retailers have no way to go.