India Cotton Continues To Rise In Default Or Delay Shipment

According to the cotton trade enterprises in Qingdao and Zhangjiagang, according to the order quantity of 1-2 months, at least 50 thousand tons of India cotton can arrive at the port of shipment from late March to mid April, but the actual port volume will be less than 45 thousand tons due to the continuous increase of India ginning factories, exporters' default or delayed shipment.

Analysis of the industry, India cotton default mainly for the following reasons:

1. In the first ten days of March, cotton rose sharply during the ICE period. In addition, the cotton seed sale in India dropped and the cotton business hyped up the good decline of cotton production in India during the 2018/19 year. Therefore, the price and export price of cotton in India continued to rise. Since February 13th, the CIF quotations of S-6, J34 and MCU5 have risen by 6.2-6.5 cents / pound (the price of domestic cotton in India has risen more than 6 cents / pounds), so the India ginning plants and exporters refused to ship the goods according to the contract and the agreed terms.

Two, after the Spring Festival, Chinese textile mills and traders signed a contract to import India cotton to replenish the supply of domestic low-quality cotton for 4-9 months, and the 2019 cotton reserves were not available. They gave India exporters the goods to sell.

Three, in the past 1 months, the rupee of India has been stronger against the US dollar, and the cost of cotton exports has increased. India ginning mills and traders have played a role in the hope that buyers will share the additional cost.

Four, Sino US trade negotiations will not yield results in the short term.

According to the Ministry of Commerce, China and the United States will continue the eighth and ninth rounds of consultations on the issue of Sino US trade in Beijing and Washington at the end of March and early April. It is hard to judge whether or not to reach a consensus before the end of April. India cotton enterprises are suspected of breaking the contract and breaking the contract by breaking the contract and breaking the contract.

A large trading enterprise in Qingdao indicated that the shipment and delivery of India cotton in the middle of March were more timely. However, in late March and April, the shipment of India cotton appeared to delay shipment and breach of contract. The exporters of international cotton mills and India had difficulties in performing their contracts according to the original contract and the original price. There were three main solutions: buyers and sellers renegotiated the contract price 3-4.5 cents / pounds, the original procurement contract continued to be effective, and the sellers allowed the 15-30 day shipment to be postponed, because China's concentrated signing of India cotton resulted in tight shipping, delivery and delivery were not guaranteed; the seller or the buyer broke the contract directly (a few international cotton traders or gave the buyer a certain amount or other means of compensation, but most of the India exporters were "10 Fen not allocated"), and the procurement contract was void.

At present, Qingdao port has cleared India cotton shipments relatively fast, but the price did not rise with the increase of ICE cotton and India cotton export prices. S-6 1-5/32 stabilized 15300-15400 yuan / ton, unchanged from last week. When Zheng cotton did not break through the 15200-15500 compartment and downstream gauze consumption off-season or arrived in advance, traders and middlemen were very cautious in raising prices.