High Quality Cotton Is Deeply Trapped In "Besieged City"

According to feedback from cotton trade enterprises in Qingdao, Shanghai, Zhangjiagang, Guangzhou and other places, since mid March, port bonded, customs clearance and sale of external cotton have continued to rise, and some cotton enterprises have temporarily solved their funding problems through pledge financing and a small number of low price dumping. Even weaker, some traders who mainly operated Australian cotton, American cotton and Pima cotton did not even "open" for a week or a half.

An import company in Zhangjiagang said that the domestic customers of Pima cotton and high quality Australian cotton are relatively fixed, and the price is also difficult to take. With the high cost of cotton picking and processing, the price adjustment range of International Cotton Traders and domestic trading enterprises is not closely related to ICE or zhengmian, and the "resilience" and "anti inflation" are strong.

Why is high grade and high quality outer cotton "not ready to sell"? There are three main reasons for the analysis in the industry. First, with the outbreak of the new crown epidemic in Europe and the United States, since March, a large number of export orders for medium and high quality textiles and garments have been canceled or postponed. China's large and medium-sized textile enterprises have significantly reduced the purchase of high-quality Australian cotton, SJV cotton and Pima cotton, and raw material inventories have declined continuously. The situation of cotton assorting was also significantly reduced.

The two is the high price difference between high-quality Australian cotton, American cotton and medium and low quality cotton. Since the beginning of May, Qingdao port 2019 SM 1-5/32 Australia cotton (strong 29-30GPT) has quoted 14500-14900 yuan / ton (net weight, the same below), while the quotation of India M 1-5/32 and Brazil cotton M 36 were 11800-11900 yuan / ton, 12250-12350 yuan / ton respectively, and the price difference reached 2600-3000 yuan / ton, 2200-2600 yuan / ton;

The three is that the export is blocked. Some spinning and weaving enterprises have taken the domestic market as a breakthrough, and the phenomenon of reducing cotton grades, Furusa and lowering inspection indicators is quite common. Henan, Shandong, Jiangsu and other places many cotton mills 50S and above combed and combed yarn accounted for a larger decline in the same period last year, the order of raw materials replenishment is "real cotton, Xinjiang cotton, Brazil cotton or middle and low quality cotton, SJV ACALA, Pima or Egyptian long staple cotton", as long as the yarn quality, indicators meet customer requirements, as far as possible or less use of cotton, Pima cotton.