资讯 1 10 英文网 283 Cotton News 604564 Why demand for imported cotton remains high despite inverted price? 2022-07-27 16:45:14 shenhe
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Why demand for imported cotton remains high despite inverted price?
2022-07-27

According to customs data, China imported 162,800 tons of cotton in June this year, down 10.64% month-on-month and 5.35% year-on-year. From January to June 2022, China imported 1.1353 million tons of cotton, a year-on-year decrease of 26.59%. The number of cotton imported to the port has decreased, and the port inventory has also fallen to the low-medium range in the past three years. In addition, the customs clearance cost is high, the number of tradable imported cotton is reduced and the right of foreign cotton traders to speak has been strengthened. 

 

According to some cotton-related foreign traders and importers in Qingdao Port and Zhangjiagang, the basis of imported cotton is currently high, and both sellers and buyers are facing operational difficulties. Some US cotton basis has been raised to 5,500 Yuan/ton, which has never occurred in the history of domestic cotton. According to the current Zhengzhou cotton CF2209 contract, the spot price is basically at 20,500 Yuan/ton, but there are basically no spinning enterprises that can really accept this price. 

 

Why don’t port cotton companies have the willingness to lower prices to sell? The author consulted a number of trading companies, and the feedback was not very different. Most of them said that although the overall domestic demand was not good recently, due to the ban of Europe and the United States on Xinjiang cotton and the dependence on cotton products, domestic export-oriented enterprises have turned to imported cotton for raw material procurement. In addition, the number of goods held by small and medium-sized enterprises in the port is generally small, and with high import costs, port cotton merchants have become increasingly reluctant to sell imported cotton and wait for higher prices. 

 

Since the second quarter of this year, foreign cotton prices have continued to go strong, and the price difference between domestic and foreign cotton has been seriously upside down. In theory, the foreign cotton demand of textile enterprises will be greatly reduced, but because domestic exports of textiles and clothing still account for a high proportion, some foreign trade enterprises can only compress profit, take high-priced orders of foreign cotton, so as to stabilize short-term production. If the demand for gold September and silver October recovers smoothly, it is expected that the imported cotton market may be the first to usher in a purchasing boom.