Import Cotton Market Turnover Is Not Brisk, Throwing Storage Even Worse

Affected by the fact that the downstream delivery situation has not improved significantly and the price difference between domestic and foreign cotton continues to be inverted, the recent import cotton delivery has been slow. Especially since July, the sales situation has been even worse. On the whole, the high inventory of imported cotton remains unchanged, and it is difficult to improve significantly in the short term.

According to the survey, the total amount of domestic cotton available inventory is between 500000-550000 tons, slightly less than before, but the reduction is limited. From the perspective of regional distribution, Qingdao and Zhangjiagang still occupy the most important position, with inventories of about 320000 tons and 100000 tons respectively, accounting for more than 80% of the total. Other places including Hubei, Henan and Anhui also have some imported cotton stocks, but the overall distribution is relatively scattered.

From the perspective of inventory structure, American cotton and Brazilian cotton still occupy the main position, accounting for more than half of the total inventory; Australian cotton, Indian cotton, Central Asian cotton and West Africa cotton stocks are also large, accounting for more than 1 / 3 of the total inventory; others include some Sudan cotton and a small amount of Greek cotton.

From the point of view of the goods, the price performance ratio of Brazilian cotton and some American cotton is mainly, but the overall transaction situation is not very optimistic. On the one hand, because the price difference between domestic and foreign cotton continued to hang upside down, the price advantage of imported cotton was not obvious. Due to the rapid rise of international cotton price in recent years, the increase is far greater than that in China. The cotton base difference between domestic and foreign countries under 1% tariff has been basically inverted for nearly a month. In this case, import cotton price advantage is no longer, take goods continue to light. The second is that the situation of downstream goods has not improved significantly, and textile mills are not willing to take goods. Recently, the order situation of textile mills has not improved significantly, and the inventory of yarn and grey cloth in the downstream continues to be at a high level. Affected by the weak demand, taking goods is mainly based on a small amount of rigid demand replenishment. In addition, the current situation is relatively good to the low count yarn is also given priority to, the quality of general but low price cotton is more favored by textile mills. The third is the hot turnover of reserve cotton, which squeezes the import cotton market, making the situation worse. Since July, domestic storage has been launched. The reserve cotton with ordinary quality but low price has formed a structural supplement to the market demand, which is just in line with the current downstream order demand. Therefore, the transaction has been hot since the auction started. Affected by this, the original not very hot import cotton market transactions become increasingly cold, and even once there was a price without the market. In recent years, a small amount of goods have been sold daily, but the textile mills mainly purchase American cotton and Brazilian cotton for production, so the overall volume of goods is not large.

In addition to the short-term trend of cotton production in Hong Kong, Hong Kong and Macao, as well as the recent situation of cotton production in Hong Kong, Hong Kong and Macao, as well as the recent situation of cotton production in Hong Kong and Macao, it is expected that some cotton enterprises will continue to produce cotton in Hong Kong and Hong Kong in the near future. On the whole, affected by the continued light cargo situation, the situation of high domestic import cotton inventory is difficult to ease in the short term.