Customs Statistics: China'S Imports Of Brazilian Cotton Fell Sharply In March

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According to customs statistics, in March 2022, China imported 210000 tons of cotton, with a month on month increase of about 20000 tons and a year-on-year decrease of 26.5%. However, the year-on-year decrease was significantly narrowed than that in January and February. It is worth noting that in March, American cotton accounted for more than 70%, while Brazilian cotton fell sharply, not only giving up the first place to American cotton, but also joining Indian cotton, Australian cotton and African cotton. Brazil's cotton imports have dropped sharply, which may be due to the following factors:

1. Brazil cotton has been basically sold out in 2020 / 21. At present, there are few bonded spot goods in port. The focus of attention and transaction of both parties is shifted to September / October / November, and the shipping date is 2021 / 22; December / 1 / 2 / March is the centralized shipment, delivery and customs clearance period of American cotton in 2021 / 22.

2. Up to now, the price of Brazilian cotton for Port Bonded and March / April shipping is on the high side, and the buyer has temporarily cleared out the "shopping cart". April 20-21 Qingdao, Zhangjiagang Bonded 2020 / 21 Brazilian cotton m 1-1 / 8 (strong 28gpt) quoted 153.50-155.50 cents / pound (the quotation is very confusing, take the middle price); American cotton 31-3 / 31-4 36 / 37 (strength 28gpt) quoted 155-157 cents / lb, which not only has advantages in short fiber rate and consistency, but also is new cotton in 2021 / 22, with no obvious degradation.

3. Due to the sharp rise of cotton in ice period in March, some international cotton merchants and traders delayed the performance of the contract (low spot inventory and sufficient confidence of the seller), or even directly breached the contract through negotiation, or even directly breached the contract, resulting in the import volume of Brazilian cotton in that month lower than expected.