A Large Number Of Port Cotton Inventory Digestion, Recently Inquiry Began To Turn Light

According to the feedback from several foreign and large-scale cotton trading enterprises, the cotton inventory of Qingdao, Zhangjiagang, Shanghai and other importers has been in a state of less in and more out in October (bonded + non bonded cotton). The varieties with active inquiry and shipment range from Brazilian cotton to Indian cotton, and then to American cotton, most of the traders' inventory and capital pressure have been effectively released.

The sharp rise of Zheng cotton in October led to the expansion of the price gap between China and foreign cotton, the worry about the US government's extensive import ban on cotton products in Xinjiang after November, the periodical recovery of domestic and foreign trade orders in October, and the worries of cotton textile and other middle and lower reaches enterprises on the decline of cotton quality / grade in Xinjiang in 2020 / 21, etc., have stimulated the successful realization of Cotton Traders outside the port De stocking and unpacking.

An international cotton merchant in Qingdao said that at present, the cotton sales outside the port present the following three characteristics:

First, in recent years, small and medium-sized cotton traders have been paying close attention to shipping and landing, and most of their stocks have bottomed out. Therefore, the cotton resources sold through bonded and customs clearance are only concentrated in the hands of a few large cotton enterprises, and the price gap has been narrowed, and the phenomenon of chaos and self-reliance has been reduced;

Second, the spot prices of Brazilian cotton for customs clearance in 2019 and 2020 in each main port are very rare. Most traders pre sell medium and low quality Brazilian cotton such as m 1-1 / 8 in December ahead of the RMB price. The spot stocks of American cotton, Indian cotton, West Africa cotton and Australian cotton are still relatively sufficient, of which the proportion of American cotton is more than 40%;

Third, the price quotation sales volume of American cotton in October / December shipping period is still relatively large (mainly cotton in 2019 / 20 and a small amount of cotton in 2018 / 19), which is significantly higher than Brazil cotton and Indian cotton. It is expected that the arrival and customs clearance of US cotton in November and December will still be "far ahead".

As of the end of October, China's main port cotton inventory is about 330000-350000 tons (bonded + non bonded), which is more than 220000 tons less than the peak in June / July 2020. The foreign cotton inventory in Huangdao, Zibo and the surrounding areas of Jinan is about 200000 tons, mainly American cotton, Indian cotton, Brazilian cotton, West African cotton and Uzbekstan cotton.

It is worth noting that at present, the quality index and color grade of American cotton and Indian cotton (part of CCI cotton resources) commodity inspection in port customs clearance and bonded in 2019 / 20 are relatively good, and the basis quotation is not low (the basis difference of American cotton is generally 825-1225, and the quotation of cf2101 + basis difference). Therefore, in Zhengzhou cotton, the main contract breaks 14500 yuan / ton, the uncertainty factors in the peripheral market increase, and the downstream orders lack sustainability Under the circumstances, in recent days, the port cotton inquiry, transaction cooling is more obvious.