Textile Raw Materials: Import Cotton Volume Rebounds

      According to the feedback from several international cotton merchants and large and medium-sized cotton import enterprises, in recent one week, Brazilian cotton not only arrived in Hong Kong and put into storage increased significantly compared with November and December, but also the RMB quotation continued to be active (including Brazilian cotton in 2019 and 2020). Domestic cotton textile enterprises and traders focused on Brazilian cotton and Indian cotton, while American cotton, West Africa cotton and Australian cotton had low customs clearance volume and cost performance Not high, color grade and quality issues such as the transaction is not satisfactory.

According to a cotton enterprise in Zhangjiagang, there are three main reasons for the recent surge in Brazilian cotton arrivals: first, due to the Xinguan epidemic, the shortage of freight ships and containers, and the soaring sea freight, the arrival of Brazilian cotton quilts in November / 12 was delayed for 20-30 days or even longer; Second, the shortage of truck logistics and labor force in some ports of the United States since late December, container "hard to find" and long waiting time for cargo ships have led to a large backlog of American cotton. Some foreign businessmen and traders seize the opportunity to transfer and ship goods from Brazil's ports, on the one hand, instead of American cotton delivery; on the other hand, they seize the Chinese consumer market; Third, compared with the "miscellaneous, disordered and big difference" of American cotton in December / January shipping period, Brazilian cotton has higher quality and color grade indexes (M grade and above, strength 28gpt and above, length 1-1 / 8 and above), which is more favored by domestic cotton enterprises.

In terms of quotation, the basis of Brazilian cotton increased in the middle and late January (including shipping, bonded and customs clearance cotton), which was significantly higher than that of American cotton, Indian cotton, and West African cotton. From January 24 to 25, the basis difference of Brazilian cotton in the shipping period of 1 / 2 / 3 in China's main port reached 7.5-8.5 cents / pound, while that of American cotton mot / me 31-436 was only 8-9 cents / pound in the same shipping period. The trend of Brazilian cotton quality keeping up with that of American cotton and the quotation remained unchanged

Firstly, up to now, the import and export of Brazilian cotton in the port is relatively smooth, the inventory pressure is not big (bonded + non bonded), and the traders have enough confidence to support the price under the premise of abundant cash flow; secondly, foreign businessmen and traders have strong expectations for the continued rise of ice in the first half of 2021; Thirdly, in 2020 / 21, Brazil's cotton planting area will obviously decline due to the serious shortage of rainfall and the land competition between soybean, corn and cotton. Fourthly, Sino US trade relations are still full of uncertainty, and the US China policy will keep Brazil's cotton export advantage.