Cotton Imports Continued Weak, India Cotton Quotation Rebounded Against The Trend

According to traders in Qingdao, Zhangjiagang and other places, since the middle and May of last year, the turnover of bonded cotton and customs clearance cotton continued to be weak. Some cotton traders who worked in India cotton, West African cotton, Central Asian cotton (Uzbekistan, Turkmenistan, etc.) did not even have two cabinets for a week, and Port Bonded cotton arrived more and more.

Several foreign businessmen said that with the rapid recovery of shipping capacity on the west coast of the United States in 3 and April, the arrival and delivery volume of contract shipment and cotton self operated (including medium and late grade low grade cotton) also increased continuously.

The purchase enthusiasm and order of the factory are much lower than that of the exporter. On the one hand, the quotas of large and medium-sized cotton mills are used in a long way. From the perspective of stable cotton blending, reserve quota purchase and high-level cotton purchase, the weak market quotation or continuation of imports in 5 and June is considered; on the other hand, commercial banks have reduced their credit support to trade enterprises.

"Become the new normal of cotton mill.

Due to insufficient funds, unable to pick up the goods, the buyer and the seller can only negotiate the delivery in batches or extend the execution period of the contract.

Although the ICE main contract has recently rebounded to the top of the 66.6 cents / pound pass, the CIF quotes and FOB quotations of the US cotton, Brazil cotton, Australia cotton and West Africa cotton have been followed up, but the RMB quotations for cotton exports outside the port are still in a weak market, which is another 200 yuan / ton lower than in early May.

On 17 and 18 May, the price of RMB C/ASM1-1/8, EMOT21-3-36 and EMOT31-3-36 in Qingdao port was quoted at RMB 15700 yuan / ton, 15600 yuan / ton, 15400 yuan / ton, compared with 13800-13900 yuan / ton of India cotton S-6M1-1/8 in May 18th, up 100-150 yuan / ton compared with the first ten days of May.

One is that the India government has no intention of dumping prices. The factory price of S-6 ginning factory and its auction are stable from the high price. Cotton enterprises have strong willingness to raise prices from the perspective of costs, financial costs and warehousing costs. The second is the high grade cotton and Brazil cotton and other customs clearance owners must keep a close eye on 2014/15 Xinjiang cotton. In the 5-9 months, when the dumping and storage of large quantities of machine generated cotton were combined, the Zheng period fell from 13640 to 13150.

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Take the export province of Guangdong as an example, according to the data provided by the Guangdong quality supervision department, in 2013, the direct loss of export enterprises in Guangdong due to foreign technical trade measures amounted to 7 billion 348 million US dollars, which was one of the provinces with the most serious loss of technical trade barriers in the mainland.

According to the survey, textile shoes and hats accounted for 23.9% of the total direct loss in industries affected by foreign technical trade measures.

Now, some emerging market access standards have begun to follow the European and American countries.

In 2014, the Egyptian Ministry of trade, industry and small and medium enterprises issued a new ministerial decree which required that imported goods must comply with the Egyptian standard, and that goods that did not conform to Egyptian standards would be returned.

In addition to its new national standards, Egypt also recognizes 6 other international standards, namely, the international organization for Standardization (ISO), the International Electrotechnical Commission (IEC) standard, the European (EN) standard, the American National Standards Institute (ANSI) standard, the American Society for testing materials (ASTM) and the Japanese industrial standard (JIS).

The implementation date of the new regulation is April 1, 2015.

This year, Saudi Arabia, the largest consumer market in the Middle East, followed suit and implemented strict product conformity certification scheme. Goods without any certificate of authentication will be refused entry to the port of Saudi Arabia.

According to relevant statistics, in 2014, China exported Saudi Arabia's footwear products to a scale of US $508 million.

It can be said that Saudi Arabia is one of the important markets for China's shoe exports, and the impact of its new regulations is quite modest.

According to the parties concerned, some manufacturers in Dongguan exported Saudi Arabia to the Saudi customs because they did not understand the latest certification requirements, resulting in considerable losses.

Unfortunately, there are also enterprises in Wenling, Taizhou.

In the first quarter of this year, the footwear products exported to Saudi Arabia in Wenling fell by 26.9%, with an export volume of 13 million 296 thousand yuan, of which the export volume in March was only 417 thousand yuan, a decrease of 93.7%.

"This new standard refers to the international standard, which is close to the EU standard, but the grade of Wenling exported Saudi shoes is not high. Most shoe manufacturers' on-site management and technological level can not ensure the quality of each pair of shoes.

The Saudi customs has to detect a pair of shoes at random for each container, and it is not allowed to appeal or to raise objections to the test again.

Once the standards are arrived, we can either give up or improve the quality of products to meet the testing conditions.

In this way, the production cost will have to be improved. "

Tang Yixin told the international finance daily, "recently we dare not take too many lists. On the one hand, we are communicating with customers. On the other hand, we want to wait and see again."

So during this period, Saudi Arabia's exports did drop a lot.

In addition to the strict standard may lead to a decline in corporate product profits, the extension of customs clearance time of export enterprises also leads to higher customs clearance costs.

"Before the entry of Saudi Arabia's footwear products need to be cleared every day, now every batch of goods must be sampled and sent to the laboratory for testing. After the test results come out, we can determine whether the goods are released.

This leads to a long detection cycle, with an average of 40 days per shipment to complete customs clearance.

Relevant officials of the Taizhou entry-exit inspection and Quarantine Bureau in Wenling said that at the same time, the Saudi government increased the cost of customs clearance and pferred the inspection fees to exporters virtually, and the time and cost of customs clearance were also pferred to enterprises.

According to the relevant staff of the Taizhou entry-exit inspection and Quarantine Bureau in Wenling, Wenling has exported 153 Saudi Arabia footwear manufacturers.

"After the introduction of the new regulations, we visited 22 large export enterprises and two foreign trade companies, of which only 5 companies maintained export trade with Saudi Arabia. 5 enterprises clearly stated that they would no longer take orders from Saudi Arabia, 7 enterprises did not understand the new policy, 5 enterprises knew the new rules, but they were still developing after wait-and-see."

Taizhou customs data also showed that in the first quarter of this year, there were only 9 enterprises involved in the export of Saudi Arabia to Wenling, including manufacturing enterprises and import and export enterprises, and only two businesses and Saudi Arabia had business dealings in March.