Market Dynamics: Although The Transaction Of Additional Issuance Of Sliding Quasi Tariff Quotas In 2024 Is Improving, It Is Not Expected

Some cotton trade enterprises in Qingdao and other places reported that, due to the shortage of cotton import quotas, the accelerated depreciation of the RMB against the US dollar, and the low inventory of bonded high-quality American cotton/Brazilian cotton in the port, the main contract of ICE cotton in March has declined continuously in the past week or more, and although the inquiry and transaction of bonded, spot and remote month shipments have improved, it is obviously weaker than the expectations of institutions and cotton enterprises.

As the additional sliding tariff quota in 2024 is inclined to large and export-oriented textile mills, plus only 200000 tons, many enterprises above the designated size (mainly for domestic sales) have little or no sliding tariff quota. In order to receive export traceability orders or complete early contracts, only foreign cotton that has been cleared at the port can be purchased. The cost of cotton yarn continues to be high, compared with 1% tariff The competitors who slip the tariff quota have obvious disadvantages in terms of competitiveness.

According to the quotation of some cotton enterprises, Brazil cotton will be cleared from the main port of China on November 20-21 1-5/32 (Qiangli 29-30GPT) net weight quotation is concentrated at 16830-17030 yuan/ton (different due to different specific indicators such as impurity and short pile rate and different warehouses); Bonded Brazilian cotton with 1% tariff quota for customs clearance 1-5/32 (Qiangli 29GPT) RMB 13590-13640 yuan/ton, the price difference between the two is 3200-3400 yuan/ton; At present, bonded Brazilian cotton in Qingdao Port 1-5/32 (Qiangli 28-29GPT) quoted about 76.87-78.12 cents/pound, and the import cost under 1% tariff quota was about 13480-13700 yuan/ton (the import cost under sliding standard tariff was 14285-14420 yuan/ton), which was 3150-3550 yuan/ton lower than the price of customs cleared Brazilian cotton.

According to the survey, since the first ten days of November, the inquiry and shipment of RMB resources (customs cleared) in China's main ports have been better than that of US dollars, accounting for the majority of transactions.