Import Cotton Turnover Increased Sharply, Quotas Expired As A Fuse?

From the feedback of port trade in Qingdao, Zhangjiagang, Guangzhou and Shanghai, since the end of 2, the turnover and export volume of bonded and imported cotton were greatly increased compared with that in December and January. It has become a beautiful scenery for a long time in the imported agricultural products market. Not only the quality of high quality and high spinnable cotton in Australia cotton, Brazil cotton, American cotton, Ukrainian cotton and so on, but also the price and price of India cotton, which are not cheap but not cheap, are much more active than that of half a month ago.

On the premise that the domestic cotton market rebound is hard to start and spring cold, the port bonded cotton, ship period cotton is the first to usher in the "willow wind blows the face".

Several foreign businessmen and importers said recently, the imported cotton shops such as American cotton, Australia cotton and Brazil cotton were very busy. They had to receive several customers to see goods, inquiries, and signed contracts every day. Some old customers even bought orders directly according to the commodity inspection report and the seller's quotation.

It is understood that, on 27-28 February, foreign merchants and traders EMOT/MOT SM 1-5/32 quoted price as a whole fell below 80 cents / pound (concentrating 79-79.5 cents / pound, CIF); SM 1-5/32 Brazil cotton, SM West Africa cotton, S-6 1-5/32 were quoted at about 83 cents / pound, and cotton textile mills and middlemen were highly acceptable.

Why is the import of cotton trading so active?

The industry generally believes that it can be summarized as follows:

The first is the issuance of the sliding tariff quotas in 2018, and the effective expiration date of the 1% tariff quotas in 2018 are all at the end of February.

Two is the ICE cotton main contract once again plummeted, close to 70 cents / pound gate trigger a certain amount of "ON-CALL" point price paction.

The three is the strong appreciation of the RMB exchange rate since January. The US dollar has broken 6.70 (at present 6.68), and the cost of imported cotton has dropped significantly.

Four, the Sino US trade consultation has been releasing good news continuously. Some of the high-grade orders have been returned from Southeast Asia and the fund situation has improved. Downstream foreign trade companies, garment enterprises and cotton textile mills continue to warm up in Europe and America.

A medium-sized trader in Qingdao believes that the fuse leading to a sharp reduction in import cotton bonded and spot stocks may be "quota expiration", but the key factor is the joint promotion of price, order and peripheral good.