2013 Reasons For The Decline In Domestic Cotton Imports In The First Half Of The Year

< p > according to the statistics of the General Administration of customs, in June, China imported < a target= "_blank" href= "http://www.91se91.com/" > strong > cotton < /strong > /a > 269 thousand and 800 tons, a decrease of 76 thousand tons, a decrease of 206 thousand tons compared with that of the previous year, a decrease of 43.3%. From September 2012 to June 2013, the total import of cotton was 3 million 782 thousand tons, down 20% from the same period last year.

The author analyzes the reasons for the sharp decline of China's foreign cotton imports in June.

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After P, May, foreign and foreign export enterprises continued to decrease their lint supply in 2012.

According to the types of cotton imported from China, mainly cotton, India cotton, Australia cotton, Central Asia cotton and West Africa cotton, but as of June 20th, the amount and shipment volume of the US cotton contract have accounted for 101% and 89% of the total export volume respectively, with only 344 thousand tons of cotton left to be pported, while the buyers are mainly in Southeast Asia countries.

Due to the exportation of cotton yarn export orders in India, the demand for cotton is growing rapidly. Under the condition of tight cotton resources, cotton has been called a target= "_blank" href= "http://www.91se91.com/" > strong > textile < /strong > /a > enterprises have been calling on the government to restrict cotton export. Its export policy is also in a state of uncertainty. Cotton and processing enterprises will decline in exports after April, while the large number of low quality India cotton in China's free trade zone has also exacerbated the worries of foreign operators.

Although Australia cotton has arrived at the main port in China in 6-8 months, it is also difficult to digest the price of more than 102 cents / pound in China's large and medium-sized cotton mills, especially in the middle of May, as the price of Uzbekistan's cotton has blocked sales.

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Since April P, the storage capacity of China's Port Bonded cotton has continuously broken through 300 thousand tons, 400 thousand tons or even nearly 500 thousand tons. In recent months, it has been "getting in more and less". In particular, the sales of India cotton and American cotton are even more difficult in the past few months. The traders and some importers have not even made a deal in a week. Therefore, foreign businessmen and some importers ask the supplier to postpone the shipment and delivery date later, plus the phenomenon of "cotton in full" and "India inside and outside" in the ports of 4 and May. Some contracts have been cancelled or pported to other Southeast Asian countries by foreign merchants and importers, and some of the West African cotton has also been directly converted to Indonesia, Vietnam and Malaysia ports.

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< p > because the national cotton store can be directly mortgaged without moving the Treasury after bidding, which has solved the short-term pressure of some cash flow enterprises. Therefore, the attractiveness of the LC90 day letter of credit buying cotton has decreased.

In addition, the "shortage of money" since May has had a great impact on many large import and export companies. The credit lines of some enterprises in Jiangsu and Zhejiang have been cut by 50%, and the importing companies have been lending or seeking other companies to open letters of credit on behalf of them, so that the contract can continue to be implemented. Some traders directly negotiate with foreign suppliers and suppliers to cancel the contract.

A company in Zhejiang originally had 5000-6000 tons of India cotton to Hong Kong before the end of June. However, due to the slow sale of bonded cotton and the compression of enterprise credit lines, the contract could only be pushed into operation in August.

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< p > at present, for China's textile "a" target= "_blank" href= "http://www.91se91.com/" > strong > dress < /strong > /a > industry, in the face of external pressure, there are various difficulties that it is hard to describe.

First, the weak textile consumption in the lower reaches of the world has led to high inventories.

The most important impact of the latest Chinese policy on the unforeseeable impact of the cotton market is the guaranteed price of cotton growers, far exceeding the level of the international market.

The result is a substantial increase in State Reserve inventories, sales of cotton farmers and rising prices in the domestic market. Textile mills face more import restrictions other than tariffs.

This, in turn, has reduced the competitiveness of the spinning mills and handed over business to competitors, such as Vietnam, where the number of yarn imported from Vietnam by Chinese textile manufacturers has increased.

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< p > in 4 and May this year, the quantity of imported cotton sold out of the warehouse was small, and the large and medium-sized cotton mills with import quotas did not purchase the power of bonded cotton for a short time, so the quota was not released and used.

Some enterprises are concerned about the 2013 cotton trade (November and later shipping date), plan to enter the market in 6 and July, and make hedging in ICE futures or Zhengzhou to avoid risks.

Meanwhile, since June, according to the needs of cotton enterprises, the relevant departments of the state have moderately increased the number of warehouses sold outside the reserve in 2011, and the advantages in terms of price and quality have attracted the popularity of cotton in the national reserve, while the bonded cotton and the sailing cotton are at a competitive disadvantage.

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