Exclusive news from China Cotton Network: According to feedback from foreign businessmen and some cotton traders, the main ICE cotton futures contract has been trading at 92-95 cents/month since the end of August. The pound consolidation and the strong rebound of Zheng cotton have led to the simultaneous increase in Xinjiang cotton spot quotations in Xinjiang warehouses. The direct import cost of foreign cotton has dropped under the 1% tariff and sliding tax. The price difference between domestic and foreign cotton has gradually expanded compared with late August. Ship cargo and US dollars The price competitiveness of the quoted port bonded medium and high-quality US cotton/Brazilian/Indian cotton has increased.
A trader in Qingdao said that in the past two days, cotton spinning customers with quotas have expressed concerns about the August/December shipping date for Brazilian cotton and the January/March shipping date of 2021/22 Enthusiasm for price inquiries and signings of U.S. cotton is gradually picking up this year. Industry analysis shows that on the one hand, ICE’s main contract once again broke through the 95 cents/pound and 93 cents/pound integer marks, and some ON-CALL contracts were passively traded; in addition, the cotton purchase market in 2021/22 is expected to “open higher and move higher”. Worrying, cotton-using companies have plans to get goods at low prices; on the other hand, the 2021 sliding-scale cotton import quota is valid until December 31, and the 1% tariff quota can be extended to be used before the end of February 2022. The quotas in hand are different , the focus and shipping schedule of purchasing foreign cotton are naturally different. For example, before the end of December, there will be very few shipments of US cotton, Indian cotton, and West African cotton in 2021/22; while Brazilian cotton and Australian cotton in 2020 with shipping schedules in August/December will account for a relatively large proportion.
Judging from the quotations of port traders, the quotations of bonded and spot Brazilian cotton M 1-1/8 on September 2-3 were concentrated at 104.05-104.30 US dollars. cents/pound (basis 10.5-11 cents/pound), the import cost under 1% tariff is about 16,300-16,400 yuan/ton (net weight); while the import cost under sliding tariff is about 16,500-16,700 yuan/ton, low At present, the “Double 28” Xinjiang cotton in Henan, Shandong, Jiangsu and other mainland warehouses is more than 2,000 yuan/ton; while the bonded Indian cotton M 1-5/32 is quoted at about 96.8-97.1 cents/pound, and the import cost under 1% tariff is about 15,250-15,550 yuan/ton (net weight), which is nearly 3,000 yuan/ton lower than the “Double 28” Xinjiang cotton in mainland warehouses.
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