Cotton Imports Continued To Show A Marked Downward Trend.

In November, some domestic textile enterprises replenish raw materials inventory, and close to the end of the year.

The number of cotton imports in China increased significantly from last month, but it continued to decline compared with the same period last year.

The use of quotas is still 1% of customs duty, and the proportion is close to 80%.

Goods accounted for nearly 40% of imports and second of imports, slightly more than 30%.

Australia is still the largest source country, but its share has dropped to 30%, and the proportion of imported cotton in India has increased by 24%, ranking second. Import customs are mainly Qingdao, Nanjing and Shanghai; the most import areas are Shandong and Jiangsu.

According to customs statistics, China in November 2015

Import 84 thousand tons, an increase of 42 thousand tons compared with October, an increase of 100.6%, a decrease of 8 thousand tons, a decrease of 8.3%, and an average import price of 1653 US dollars / ton, a decrease of 37 US dollars compared with October, a decrease of 2.2%, a decrease of 12.4% over the same period last year.

In the first 3 months of 2015, cotton imports totaled 177 thousand and 500 tons, down 40.2% from the same period last year, and 1 million 287 thousand and 100 tons in the first 11 months of 2015, a decrease of 40.9% over the same period last year.

Cotton imports continue to show a significant downward trend, easing the pressure of domestic cotton market supply, domestic cotton supply and demand situation is expected to be eased, reducing the pressure on domestic cotton prices, but the increase in imports of cotton yarn also to a certain extent, hedging the cotton imports brought about by the substantial reduction of the impact.

According to the latest statistics from the General Administration of customs, in November 2015, 159 thousand and 500 tons of cotton yarn imported in China decreased by 8.49%, down 2.91% from the same period last year. In 2015 1-11 months, China imported 2 million 158 thousand and 900 tons of cotton yarn, an increase of 19.67% over the same period last year.

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Recently, the renminbi accelerated its depreciation and earned enough eyeballs for cotton buyers and traders, adding another layer of frost to the already sluggish cotton import momentum in China.

Since the Federal Reserve announced interest rate hike on December 2015 16, the RMB exchange rate has been rickety. In January 7th, the RMB exchange rate in Beijing was 6.5646, up 0.9% from the beginning of this month, and the offshore RMB exchange rate dropped by 6.7.

Some traders said that the cotton that they operated had already locked the remittance in the expectation of depreciation, so as to prevent the devaluation as far as possible, do not open a forward letter of credit, choose a spot payment or D/P payment method, and lock the exchange rate around 6.4.

Depreciation has no effect on cotton that is to be sold in stock, but for late orders, the company is quite cautious.

This round of depreciation has a significant impact on buyers and traders who have not locked the exchange rate risk in advance, and the cost of imports has increased substantially.