Cotton Imports Have Increased And Cotton Dealers Are Cautious About Futures.

From 1 to August, Shandong imported 870 thousand tons of cotton, compared with 570 thousand tons in the same period last year, an increase of 53%.

But because of

In the downturn of the market, cotton circulation is slow, and the reserves of cotton in the warehouse increase.

However, due to the impact of cost, freight and customs duties, dealers believe that the price of imported cotton is unlikely to fall again, and the price of imported cotton tends to be stable.

Multiple factors lead to slow sales

In October 10th, seven or eight warehouses from Linyi and Weifang were waiting for the shipment of cotton before the warehouse of a logistics company in Qingdao, Qingdao free trade zone.

"Last year, there were 300 trucks to pport cotton in a month, and there were twenty or thirty vehicles a day.

Now a month is also more than 100, today seven or eight, is the most in the last few days.

The warehouse manager, Lao sun, said: "there was too much inventory in the previous period, and now the shipment is not very fast. According to the current rate, the cotton in the warehouse needs to be circulated, at least two months, and the 5 cotton warehouse is still almost saturated.

"Cotton circulation this year is indeed grim than in previous years, mainly by the impact of the overall economic situation, domestic cotton and textile prices upside down, cotton consumption demand of domestic cotton textile enterprises are suppressed."

Song Guoliang, warehouse manager of cotton bonded area in Qingdao port (Group) Co., believes that in the first half of this year, many textile manufacturers saw the price drop and began to order imported cotton. As a result, cotton was concentrated on shore in July and August, while China's textile industry was still in the doldrums.

In addition, cotton is a flammable goods, storage conditions are high and risky. Small warehouses outside the bonded area are difficult to meet the requirements. At present, cotton is mainly concentrated in several large storage companies in the bonded area.

Zhang Peng, director of the Cotton Exchange Market Office of Qingdao bonded area, said that the port hoarded cotton was not all imported into the Chinese market. Only after the import quota of cotton was cleared, it was sold to the domestic market. The cotton beyond the quotas only existed on the port of Qingdao temporarily, and sold to the international market after the port was completed and pferred.

"China's warehousing costs are lower than that of the United States, and many international dealers will choose to pick cotton for storage in China and wait for domestic buyers."

A dealer told reporters that international dealers used the cotton to hedge in the futures market, and temporary unsalable sales had limited impact on them.

On the afternoon of October 10th, in an interview with reporters, Wu Hehua, general manager of Qingdao yuhuaxing International Trade Co., Ltd., the phone kept ringing.

"Business is bad, the number of old customers is decreasing, and the number of new customers is very small."

Wu Hehua told reporters that they are mainly cotton cotton, cotton and India cotton, the company not only acts as an international agent, but also hoarding part of the cotton and earning the difference.

"In the first half of 2011, we ordered more than 500 tons of India cotton futures, at that time the price was 22000 yuan per ton, while the price at the time of sale had dropped to about 18000 yuan per ton, and lost nearly 2 million yuan."

Wu Hehua told reporters some self mockery that in early 2009, cotton prices per ton were over 30000 yuan. When prices fell to 22000 yuan last year, many dealers thought that cotton prices had bottomed out and began to hoard cotton for sale after the price rebounded.

"It is much better to make forward futures, and dealers in spot trading are better."

Wu Hehua believes that at present, cotton traders in Qingdao Port Free Trade Zone are more cautious about importing cotton futures trading.

Qingdao silver Xia Trade Co., Ltd. staff told reporters that in September last year, the company has begun to focus on long-term futures trading, and now the company has not yet made plans to buy futures, but also to observe for some time.

Future market stability

In September this year, the national development and Reform Commission announced a new round of cotton purchase and storage plan.

According to the plan, the temporary storage and storage of cotton in the central storage cotton company was set at 20400 yuan / ton, up 600 yuan / ton compared with the previous year.

"Domestic cotton purchasing and storage mechanism is to protect the interests of cotton farmers and maintain the stability of the domestic market.

But the regulation of imported cotton depends mainly on quota management.

Song Guoliang told reporters that the collection and storage system and quota system were targeted at different markets. The total quota control is the main means to regulate China's import cotton market.

"At present, the price of imported cotton is 17000 yuan / ton to 19000 yuan / ton, the price basically reflects the cost of imported cotton, and the import of cotton trade should enter a relatively stable state."

At present, the price of India cotton's international market is around 13000 yuan / ton. Some dealers think that the cost of pportation, taxes and profits will be counted, and the price of imported cotton will continue to decline.

The national development and Reform Commission recently revealed that from 1 to August this year, China imported 3 million 770 thousand tons of cotton and 5 million 440 thousand tons of cotton throughout the year, including 1 million 600 thousand tons of special customs supervised areas.

According to the data released by Qingdao customs, from 1 to August, Shandong imported 870 thousand tons of cotton, an increase of 53% compared to 570 thousand tons in the same period last year.

Recently, the national development and Reform Commission announced the number of import tariff quotas for grain and cotton in 2013, of which 1% of the cotton tariff quota is still 894 thousand tons, while the sliding tariff quota has not yet been announced.

It is understood that after the completion of the new cotton storage and storage work in the past year, the state will also issue a number of sliding tax quotas to regulate the cotton capacity in the domestic market.

Up to now, cotton slipping quasi tax quota has been issued 2 million 100 thousand times in two times this year.

Sun Liwu, an information analyst at Zhuo Chuang, said that in order to support textile enterprises, the quasi tax quotas will continue to be granted. However, in order to protect the domestic cotton market and increase the possibility of throwing storage, the amount of sliding tax quotas issued in 2013 may be lower than that in 2012.

The industry believes that the recent issuance of cotton imports in 2013

In order to improve the circulation rate of imported cotton, the conditions for the digestion and backlog of cotton in the port have been created. As long as there is no major fluctuation in the international cotton market, the price of China's imported cotton tends to be stable.