Under The Uncertainty Of The Market, The Default Of Foreign Cotton Import Enterprises Is Rising Rapidly.

Recently, a number of foreign and domestic traders have shown that the India cotton and American cotton contract breach has been on the rise, especially those that have not yet been paid.

Some foreign businessmen reported that they entered the year January and went to the time when the domestic import enterprises concentrated the issuing of certificates, and they refused to open their certificates without giving evidence or other questions.

The main reasons are as follows: 1) in 2012, the import quota of cotton imports in China was very uncertain. Before February 20th, the import enterprises could not use the quota in 2011.

2) the domestic cotton prices and export prices in India are falling far beyond the scope of import enterprises.

3) at the end of the year, some enterprises did encounter difficulties in issuing certificates.

According to some cotton traders in Qingdao, Shanghai and Zhangjiagang bonded area, by the middle of December, the storage capacity of the port free trade zone outside the port was increasing. It is estimated that the quantity of India cotton will increase significantly in 1 and February. The storage price of many bonded warehouses is rising obviously. The warehousing cost of cotton in the Qingdao and Shanghai bonded areas has risen to 0.85-1.0 yuan / ton / day. The charge for the old customers is slightly lower, but it has also been raised to 0.70-0.80 yuan / ton / day.

On December, 21 and 22 December, the price of India cotton S-6 in 2012 1/2 was still 92-93 cents / lb (90 days), but the actual paction price dropped to 90 cents / pound; SM1 - 5/32.

Australian cotton 4/5 month shipping price is still maintained at 109-110 cents / pound, but the one-time order of more than 100 tons, the lowest paction has appeared 104.5 cents / pound price, "high and low turnover" is still a high level of cotton, cotton and cotton in general.

However, a India cotton trader believes that the India cotton before January is mainly pre - flower, including S - 6, which is of poor quality. In addition, some international cotton traders and India processing enterprises jointly make adulteration (including J-34 or even short fiber, leftovers, etc.), and the internal quality and spinnability are relatively poor. Therefore, it is suggested that enterprises should make India cotton for 2/3 months sailing date.