Foreign Trade News: Import Cotton Sliding Tax Quota Attraction Declines

According to the feedback of cotton trade enterprises in Qingdao, Zhangjiagang, Wuhan and other places, the overall cotton inventory in the port has remained stable in the past week or more, and the outbound and inbound volumes have gradually become balanced. Inquiry/shipment of American cotton, Australian cotton, Brazilian cotton, Turkish cotton and other cotton is more active than that of cotton from other places of origin The turnover of India hand picking cotton/Pakistan machine picking cotton/Argentina machine picking cotton is relatively weak, and sales still need to "trade time for space".

According to the survey and prediction of several large cotton enterprises, by the end of August, the total cotton inventory in China's main ports had remained at 515.5-22.5 million tons (including bonded and non bonded), and the arrival of American cotton, Indian cotton and Australian cotton was slightly larger.

From the survey, in the late August, cotton trading enterprises and middlemen with large cotton stocks have expressed great pressure. On the one hand, a large number of cotton in the southern hemisphere has been listed in 2023/24, and the shipment date of Australian new cotton is concentrated in July October; The shipping date of Brazilian cotton is from September to December.

Considering that there are many ports in Australia that can ship goods, there are also many warehouses around the port. It only takes 12-18 days for Australian cotton to arrive in Qingdao, 15-20 days for Shanghai, and 20-25 days for Zhangjiagang, so the arrival and warehousing of Australian cotton in August November will be relatively concentrated; On the other hand, in 2024, China only issued an additional 200000 tons of sliding tariff cotton import quota (100% of which is non-state-owned, and is restricted to import by processing trade). In addition, under the current ICE panel price, the cost of sliding tariff imported foreign cotton will be reduced to less than 500 yuan/ton in line with the mainland's Kurdish Xinjiang cotton, so the competitiveness of port bonded cotton, spot cotton, etc. is not strong.

From the quotation of some traders, on September 3-4, Qingdao Port bonded Brazilian cotton M The net weight of 1-5/32 (strong 28GPT) is about 79-80 cents/pound, and the import cost under 1% tariff and sliding standard tariff is 13870-14045 yuan/ton and 14535-14650 yuan/ton respectively; At present, 3129B (breaking specific strength 28CN/TEX) Xinjiang machine-made cotton in Henan, Shandong, Jiangsu and other inland warehouses is priced at 14500-14700 yuan/ton. Considering the difference in net weight and public weight settlement, the difference in domestic and foreign cotton prices under sliding standard tariff is only 200-450 yuan/ton; The price difference between internal and external cotton under 1% tariff is 700-1100 yuan/ton.