资讯 1 10 英文网 283 Cotton News 604359 Port cotton arrivals may be over 400,000 tons 2022-07-14 15:47:34 shenhe
Home  >>  News  >>  Cotton News
Port cotton arrivals may be over 400,000 tons
2022-07-14

According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Nantong and other places, the total amount of bonded cotton inventory and non-bonded cotton inventory in China’s main ports since early July has shown a “double increase” situation, especially the 2021/22 US cotton inventory has grown sharply and the proportion of US cotton inventory in each main port continues to increase; while the cotton inventory in Indian cotton and Brazilian cotton ports has fallen slightly, and the inventory proportion has declined slightly. 

 

A medium-sized cotton trader in Henan said that there are three main reasons for the recent rise in US cotton port inventories: 

 

First, although ICE futures have fallen sharply since mid-June, the front-month contracts representing 2021/22 US cotton have shown strong resistance to falling. Therefore, both FOB/CNF quotations and bonded warehouse quotations of US cotton spot have been adjusted downward, which is significantly lower than the main contract of ICE, and the price difference between domestic and foreign cotton under 1% tariff has not narrowed but expanded. 

 

Second, the main contract of ICE has fallen sharply. Some 2021/22 US cotton purchase contracts signed in the first and second quarters of 2022 may be repurchased or cancelled by the seller or postponed to 2022/23, and the inventory of US cotton ports has risen passively.  

 

Third, due to the continuous aggressive interest rate hike by the Federal Reserve and the stabilizing and rebounding of various domestic economic data, the central bank’s monetary policy has shown a trend of steady and tightening. The credit support of some cotton mills and traders has weakened, and the issuance of letter of credit has been extended. 

 

Several international cotton merchants and importers judged that by mid-July, the total domestic cotton inventory outside the main ports may have reached about 400,000 tons, mainly US cotton, Brazilian cotton and Indian cotton, among which Jiaozhou Peninsula and Bonded + non-bonded cotton inventory in surrounding ports may be between 260,000-280,000 tons; foreign cotton inventory in Zhangjiagang, Nantong, Nanjing, Jiangyin and other ports total 52,000-55,000 tons; total cotton inventory in other main ports is about 70,000-75,000 tons (Shanghai, Ningbo, Guangzhou, Tianjin and other ports).