According to feedback from cotton trading companies in Qingdao, Zhangjiagang, Guangzhou and other places, since early and mid-October, although the shipments and arrivals of U.S. cotton in 2022/23 have gradually reached the lean period, coupled with the fact that U.S. cotton imports in September/October have continued to be relatively high (Customs statistics show that my country’s U.S. cotton imports exceeded 100,000 tons in September). Therefore, the total inventory of U.S. cotton in China’s main ports has recently shown a continuous decline. Cotton inventories in other origins showed a slow growth trend (bonded plus non-bonded cotton), so the total inventory increased slightly.
A cotton merchant in Jiangsu said that due to the concentrated arrival and warehousing of Brazilian cotton/Australian cotton purchased by a large cotton trading company before the end of September, Qingdao, Zhangjiagang, Nantong and other major ports not only There are relatively large quotations for Brazilian cotton resources in the October/December shipping schedule, and the quantity of bonded and customs-cleared Brazilian cotton is also large. In order to speed up sales, some traders directly quote RMB prices for Brazilian cotton for the October/November/December shipping date (requiring purchasers to bring their own cotton import quotas with sliding tariffs, basis quotes or fixed prices) to attract buyers with cotton import quotas. Cotton textile mills took advantage of the sharp decline in ICE cotton futures and Zheng cotton to lock in spot resources with high index prices and high spinnability in advance. On October 23-24, Qingdao Port’s October/November shipping date for Brazilian cotton M 1-1/8 (strong 28GPT) net weight in RMB was quoted at 16,850-17,100 yuan/ton (with its own sliding tax quota), and the port has currently cleared customs The quotations of Brazilian cotton M 1-1/8 are concentrated at 17050-17200 yuan/ton, and cargoes generally have a price advantage of 100-200 yuan/ton.
Judging from the quotations of some traders, the current net weight fixed price of bonded Brazilian cotton M 1-1/8 (strong 28/29GPT) in Qingdao and Zhangjiagang is 96-98 cents/pound (low indicator quotation is 94.1-94.8 cents/pound) pounds), the import cost under the sliding tariff is 17,200-17,550 yuan/ton; while on October 23-24, the “Double 28” (or Single 29) Xinjiang machine-picked cotton quotations for Henan, Shandong, Jiangsu and other inland warehouses dropped. To 17,200-17,500 yuan/ton, taking into account the difference in net weight and gross weight settlement, the price difference between domestic and foreign cotton narrowed to 200-300 yuan/ton, which continued to narrow compared with the first and middle of October.
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