Inside And Outside "Upside Down" Aggravated The Increase Of RMB Quotations For Bonded Cotton

According to Qingdao, Zhangjiagang and other port cotton traders, due to the shortage of cotton import quota in 1% tariff, the continued depreciation of the renminbi and the "strong inside and outside weak" pattern of the cotton market, some cotton importing enterprises have increased the price of bonded cotton RMB (requiring buyers to bring quotas with reference to CF1909+ basis).

On June 5 and 6 June, the quoted price of Qingdao 1-1/8 M 1-1/8 Greece cotton, M 1-1/8 Brazil cotton, M 1-5/32 cotton and S-6 1-5/32 were RMB 13550-13600 yuan / ton, 13700-13750 yuan / ton, 13750-13800 yuan / ton, 13950-14050 yuan / ton (buyer's own quotas).

According to the analysis of the industry, the reasons for the increase in bonded cotton and RMB quotas are as follows: first, the 800 thousand tons sliding tariff import quota issued in 2019 is "textile special field", and traders are "sidelined". Once the textile mill still imports itself, the trade enterprises will hardly be able to make great achievements. On the other hand, the price gap between domestic "point price" resources and the port quotas and the outer cotton quotas will widen rapidly as the Zheng period breaks 13000 and 12900 again. Shipments of India cotton, Brazil cotton and West Africa cotton are very difficult, requiring the buyers to import the quotas and RMB quotas for the bonded cotton instead of attracting more gravitation.

At present, traders' double sales of "double 28" Xinjiang machine pick up the public price of 13100-13200 yuan / ton, lower than the customs clearance S-6 quotation of nearly 2000 yuan / ton, lower than the bonded S-6 RMB price 400-500 yuan / ton.

From the point of view of the survey, since the end of May, not only has the port's bonded cotton and customs clearance cotton been in a semi stagnant state, but also the inquiry and signing of Brazil cotton in the 7/8 month sailing date for the month of 2019, the month of 2019, has obviously cooled down. Under the influence of the uncertain future of Sino US trade consultation, the problem of "intestinal obstruction" in textile and clothing orders is becoming more and more serious and the domestic cotton prices are falling down continuously, the short term reduction or suspension of the import of high priced and low quality cotton is a need to avoid risks and improve survival opportunities.

A cotton trader in Qingdao said that the recent quotations for bonded and customs clearance of Brazil cotton were quite numerous, with the majority of M 1-1/8 and SM 1-1/8 (a small number of SLM 1-1/8, SLM 1-3/32), mainly because the quality of Brazil's cotton goods was much lower than that of the month of September, while the new cotton market of 2019/20 year was listed and the shipment period was getting closer.