September Cotton Imports Again Diving Textile Enterprises Pay Attention To High Grade

According to customs statistics, in September 2019, the import volume of cotton in China was 80 thousand tons, a decrease of 11% compared to the same period, and a decrease of 42.8% compared with that of the previous year. In 2019 1-9, China imported 1 million 514 thousand and 200 tons of cotton, an increase of 34.4% over the same period last year. It is noteworthy that China's cotton imports increased by 19.15%, -43.38% and -42.8% respectively in 7-9 months, that is, 8 and September imports fell off the cliff type (in September, Australia exported 39 thousand and 600 tons of cotton to China, but mainly by 10/11/12 futures. Only a small amount of Australian cotton is expected to be in the statistics).

Cotton Traders in Qingdao, Guangdong and other places indicated that the inquiry and shipment of bonded cotton and instant cotton were relatively light in 8 and September. Cotton mills and middlemen mainly performed on contracts, and did not expand or increase their purchases. The export of cotton at the port was slightly better than that of bonded cotton, and the turnover rate of bonded cotton was slightly stronger than that of the cotton futures. On the one hand, traders mostly adopted the "CF2001 + base" offer, while the price of main cotton contract fell from 13775 yuan / ton to 11970 yuan / ton in 8/9 month, and the price adjustment of RMB was relatively large. On the other hand, some traders were in the middle and early stage, and the proportion of SM and M was high. Strong force was also mostly in 28-30GPT, while the spot and shipping cotton were mostly low quality and low grade late flowers, which did not match the actual demand of some cotton mills.

In September cotton imports continued to "dive" in anticipation, and the price of cotton and Australian cotton in Brazil in 2019 was significantly higher than that expected by cotton mills and traders. According to statistics from some international cotton traders and importers, China's cotton imports will rebound slightly in October, which is mainly affected by the overall narrowing of cotton price differentials in October and outside (Zheng cotton is significantly higher than ICE), the RMB exchange rate has been depreciated, and the competitiveness of foreign cotton and RMB has continued to recover. September may become the lowest point of 2019/20 cotton imports. The main reasons are as follows:

First, September port bonded and customs clearance cotton M/SLM, strong 25-28GPT low quality cotton in the majority, compared with the national cotton and 2018/19 domestic cotton, "quality is not good, the price is not cheap"; the two is the Sino US trade negotiations in September reached a deadlock, tariffs on imports of goods, textile enterprises, traders purchase 2018/19, 2019/20 year, the United States cotton to apply for tariff exclusion is not difficult, so wait and see, the most reliable; three is the Fed's interest rate reduction and contraction of the background, the yuan devaluation is strong, the customs import costs rise; four is some traders, ginning factory to tighten the price clearance of 2018/19 domestic cotton.