Cotton Trade In Free Trade Zone Is Beautiful, Cotton Sales Or Late Effort.

How much cotton is there in the main port free trade zone in China?

Recently, the results of investigation and announcement by some institutions and Cotton Traders showed that as at the end of December, 291 thousand tons of cotton in the bonded area were not cleared, which was flat at the end of November, but increased by 235 thousand and 500 tons compared with the end of December 2017, an increase of 80.9%.

Among them, Australia cotton, Brazil cotton, India cotton, American cotton and West Africa account for a relatively large proportion. Compared with November, the cotton and India cotton declaration and storage volume rebounded relatively well.

Several international cotton traders and importers said that as of the end of December, the possibility of bonded cotton warehouse exceeding 290 thousand tons was unlikely. The data need to be verified and verified.

Cotton reserves are limited in quantity. In the 10-12 months, cotton and cotton in Brazil were mainly shipped in Australia cotton and India cotton. In addition, a large reduction in prices and appreciation of the renminbi were added to the cotton store in the year of 2018/19. With the sharp reduction in prices and the appreciation of the renminbi, the contract and shipment of the cotton products in the past two months had been relatively smooth. The stock market was on the decline. On the other hand, ICE futures continued to "dive" in the first ten days of August, and the contract fell from 89.74 cents / pound to 70.65 cents / pound in March, a decrease of 21.27%. Therefore, most of the cotton companies involved in the previous contract losses were heavier and the difficulty of "unwinding" was relatively large. Therefore, from time and willingness, the enthusiasm for importing and shipping cotton outside the month was not high. On the one hand

Traders in Qingdao, Zhangjiagang, Guangzhou and other places reflected that in the middle of December, the US cotton which declared and arrived in 2018/19 increased slightly, mainly in the middle and high quality C/A, EMOT, ME and PIMA cotton.

The first is the adjustment of the tariff policy on the import of US cotton to China in the month of 1/2/3, and even the expected increase in the US cotton imports in the 2018/19 year. Two, the RMB exchange rate has been derogated from rising, the import cost has decreased, and the competitiveness of the outer cotton has increased. The three is the 800 thousand tons of quasi tariff quotas extended from 2018 to the end of February. In addition, 1% of the tariff quotas have been issued in 2019, and the choice of textile enterprises and importers is large. Four, the cotton production and export capacity of India cotton is much lower than expected in the year of 2018/19, and the low quality of S-6 and MCU5 has given the US cotton a chance to seize the Chinese market share.

Extended reading:

China's active purchase of Australian cotton exports accelerated

According to the Australian authority report, as of the end of November 2018, Australia's 2017/18 cotton exports totaled 3 million 460 thousand bales.

It is widely believed that Australia's cotton harvest in 2018, so that by the end of February 2019, when the end of the export season, the export volume of Australia cotton will reach 4 million 500 thousand packages, and now the export speed is indeed slow.

According to the analysis, the reason for the slow export of Australian cotton is that exports were below normal level in 9-10 last year.

Australian cotton exports began to accelerate significantly in November and reached the highest level in the year.

Taking into account the recent significant increase in China's purchases, exports from December to January will continue to accelerate.

Statistics show that in November 2018, Australia cotton exported 237 thousand packs to China, exported 85 thousand packets to Vietnam, and the other main buyers were India and Pakistan.