Huangdao Port Raw Cotton "Stagnant Warehouse" Due To Imbalance Between Supply And Demand Caused By Large Price Difference, Quota Delay

China's largest cotton import port - Huangdao port raw cotton stocks surge, full warehouse rate has exceeded the warning line.

By the end of the first quarter of this year, Huangdao port's warehousing enterprises were stocking about 200 thousand tons of cotton, a record high.

More cotton and less cotton are the problems facing Huangdao port.

In the first quarter of this year,

A total of 1490 batches of cotton and 402 thousand tons of weight were imported, with a value of $930 million, representing an increase of 49.9%, 64.8% and 20.8% respectively.

"The price difference between domestic and international cotton prices is large, which makes the enthusiasm of importing raw cotton high, and the downstream demand is relatively low." it only causes the phenomenon of "stagnant warehouse" of cotton at Huangdao port.

Cotton spinning analyst Li Liheng told the reporter.

Market waiting quota

"The import price of grade 3 cotton is now 1.6 yuan / ton, and the price of national cotton is still over 19 thousand yuan / ton."

Li Liheng said.

According to statistics, the average price of imported cotton in Huangdao port is about 15 thousand and 200 yuan / ton in the first quarter, even though other tariffs such as tariffs are added, there is still room for the purchase and storage price of 20 thousand and 400 yuan / ton in China.

According to Li Liheng analysis, under the promotion of this price difference, cotton was imported in large quantities, but because of the quota restriction, it could only stay in the port.

It is understood that since the beginning of this year, the full warehouse rate of Qingdao bonded port area has been rising all the way, and now it has passed the warning line.

The backlog of cotton keeps some logistics companies from complaining about "business is cold."

Cotton import quotas are for the purpose of restricting foreign cotton imports.

Cotton textile enterprises must apply for quotas if they want to get imported cotton.

This year, quota issuance has been relatively slow, which is a headache for many enterprises that want to get cheap cotton.

According to the data released by the national development and Reform Commission last year, the import quota of this year is 894 thousand tons, which has not changed since 2004.

However, after the end of each year, a new quota will be issued, and there is no definite information about the quantity and time of the quota.

Not only domestic cotton spinning enterprises, but now all cotton exporters are waiting for the issuance of China's import quotas.

Among them, the Commerce Department of India's Ministry of Commerce and industry announced the latest announcement 4 days ago, announcing that the country has again liberalized cotton exports.

Some textile enterprises directly import cotton yarn.

Li Liheng told the reporters, because the state did not introduce any restrictive measures for cotton yarn imports, that is to say, the purchase of imported yarns did not require quotas, so many cotton textile and garment enterprises now choose to purchase imported cotton yarn directly.

"This also affects the domestic yarn enterprises, and the domestic yarn market is also in the doldrums."

She told the reporter.

However, on the 3 th, it was reported that the cotton yarn of a large textile enterprise in Binzhou was quietly rising, and some of the marketable cotton yarns were raised by 500 yuan / ton -1000 yuan / ton.

The responsible person said that due to the recent sales of cotton yarn products in Guangdong, the corresponding specifications began to increase.

The relevant enterprises in Shandong have heard that the textile enterprises have followed up actions after raising the price. This market is generally surprised that most traders remain wait-and-see, and some of them begin to follow suit.

From the current market situation, Li Liheng analysis said, "imported cotton use is high, the demand for national cotton is in the doldrums. Due to a large number of storage and purchase, now the real estate cotton is limited, no import quota enterprises, some choose relatively high price Xinjiang cotton, to downstream.

It must have an impact. "

The reporter has learned that imported cotton yarns can not meet the needs of some enterprises because of their different fibers and low yarn quality. Therefore, many cotton spinning and garment enterprises can not "prefer" imported yarns.

Global 35% cotton stocks in China

The 2011 year cotton temporary collection and storage online paction ended in March 31st this year. A total of 3 million 125 thousand tons of cotton were actually traded, and the number of cotton purchasing and storage accounts for 49% of the total output of cotton in 2011, a record high.

China's big acquisitions that have not yet been seen in more than 10 years have also attracted great attention from the international agricultural sector.

The latest monthly supply and demand report released by the US Department of agriculture in April indicates that the global end of the cotton inventory is expected to increase to 66 million 70 thousand bales (480 pounds / pack) as of July 31st, representing an increase of 4 million packages compared with the March estimate.

This figure is 30% higher than that in 2010/2011, which is more than 40% higher than that in 2009/2010.

At present, about 35% of the world's cotton stocks are in China's warehouses.

The report also said that the year-end inventory of cotton in the global 2011/2012 increased substantially. In addition to the increase in stock in India, China's cotton purchase and storage policy also restricted free supply, thereby boosting imports and limiting consumption.

So this month, China's cotton stocks were raised by 3 million packs to 23 million 100 thousand packages.

This inventory level means that the policy reserves may reach the lowest level before the end of 31 in July.

In addition, global consumption fell by 1 million packages in 2011/2012, mainly in China, which is 6% less than expected.

Global trade figures show that China's imports have increased by 2 million packs to a record 20 million 500 thousand packs.

"Cotton temporary purchase and storage policy is a protective measure. Every year from September to March next year, the state makes the purchase price, and the cotton farmers pay for the storage.

The policy is aimed at maintaining the enthusiasm of cotton growers, balancing the shortfall of cotton, and throwing away the reserves, but there is no news of dumping yet.

Li Liheng said.