The Number Of Foreign Cotton To Port Has Increased By &Nbsp; The Contract Is Hard To Enforce.

According to some cotton traders in Qingdao, Shanghai and Zhangjiagang bonded areas, by the middle of December, there were more and more cotton warehouses in the Port Free Trade Zone, and many foreign businessmen who expected to arrive in late December and January were booked before mid December.

Several large foreign businessmen said that the quantity of cotton to port from December to February next year will be very large, mainly India cotton and American cotton. The pressure of inventory in port bonded area will be greater. Some cotton enterprises have already leased the cotton warehouse half a month or a month in advance.

According to two foreign businessmen, by December 16th, the number of cotton inside and outside the Qingdao Port Free Trade Zone has reached 6.5-7 million tons, and it is likely to reach 9-10 tons by the end of February.

Some cotton textile enterprises and importers in Shandong and Henan indicated that nearly 80% of the India cotton which arrived before the port in late November and mid December were all S-6, but compared with the real India S-6 cotton sample, the difference in quality between the port and the real India cotton was very large. It was manifested in many short staple, poor consistency, broken fiber strength and so on. Therefore, it is very likely that India suppliers and foreign businessmen adulterate seriously, and mix a large number of fallen noil, lint or J34 cotton into S-6.

A cotton trader in India thinks that the India cotton which arrived in January before January is on the one hand is the early flower and the quality is relatively poor. On the other hand, there is indeed a phenomenon of supplier fraud. It is suggested that domestic cotton enterprises and traders should purchase cotton in the 1 and February shipping season.

Some large foreign merchants in India cotton offer smaller cotton merchants and processing plants to 2-3 cents / pound, but the control of lint quality is better.

Some foreign businessmen said that in 2012, China's cotton import slip tax formula slightly adjusted, almost no effect on the import price of Australia cotton and American cotton signed in the early and recent contracts, because the contract price was hardly below 100 cents / pound, but the impact on the export of cheap India cotton and Pakistan cotton was relatively large. The increase of China's import threshold made many factories and traders in India, Pakistan and other countries unprepared.

It is understood that, due to concerns about the decline in China's exports, the domestic supply exceeds demand worries, on December 15-18, India's domestic cotton prices continued to plunge sharply, triggering a great panic in the upstream and downstream industries.

Due to the uncertainty of cotton prices and the import quota policy of China's quasi sliding tariff, there has been a marked increase in the default of domestic import enterprises since mid December, especially in Pakistan and India cotton.

As cotton price drops more than 8-10 cents / pound, some import companies refuse to execute the procurement contract on the grounds that they do not open the letter of credit or the false and unfair terms in the contract. Of course, there are also some cotton or trading companies that postpone the delivery of India cotton or shoddy imports to the domestic importers.