资讯 1 10 英文网 294 lunbotu 605466 ICE fell below 90 cents and port inventory decline may accelerate 2022-09-29 15:46:35 shenhe
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ICE fell below 90 cents and port inventory decline may accelerate
2022-09-29

According to some cotton traders in Qingdao, Zhangjiagang and other places, affected by the factors that ICE cotton futures fell below 90 cents and Zhengzhou cotton contracts prices decreased correspondingly, inquiries and transactions of port foreign cotton have accelerated obviously, and some cotton mills that have receive traceable orders become increasingly active in replenishing inventory at low prices. Inventory of bonded cotton at ports at the end of September is expected to decline further.  

 

On the one hand, 2021/22 US cotton and Brazilian cotton arriving at ports and inbound in middle and late September has not increased significantly, international cotton trades and import enterprises quote more for goods scheduled in September/November; on the other hand, basis of bonded cotton and scheduled goods remains stable, decline of spot is basically synchronized with the main contract of ICE, the direct cost of customs clearance of 1% cotton import quotas has declined significantly compared to August/September, upside down of domestic and foreign cotton prices continues to narrow, and the competitiveness of cotton quoted in US dollar has been improve. In addition, there are a large number of remaining cotton import quotas within 1% tariff and most of them are concentrated in the hands of large and medium-sized cotton textile enterprises that trace export orders. 

 

According to the quotation of some cotton enterprises, the net weight price of customs cleared US cotton 31-3 36 (strength of 29 GPT) and 31-3 37 (strength of 28 GPT) in Qingdao Port, Nantong from September 26 to 27 concentrated at 20,800-21,000 Yuan/ton; the fixed-price of customs cleared Brazilian cotton M 1-5/32 (strength of 28GPT) was 20,000-20,300 Yuan/ton, which is 4,000 Yuan/ton higher than Xinjiang “double 28” (or “single 29”) machine-harvested cotton in inland warehouses in Henan, Shandong and Jiangsu. Affected by the continuous sharp decline of ICE, at present, the direct cost of importing boned US cotton 31-3/31-4 37 and bonded Brazilian cotton M 1-5/32 under 1% tariff at ports has declined to 20,000-21,000 Yuan/ton (a small number of traders quoted more than 21,500 Yuan/ton), which is no more upside down with the quotations of port customs cleared cotton or even slightly lower, triggering the close attention of some cotton-consumed enterprises and middlemen. With the main force of ICE breaking 90 cents/pound downwards, signing of foreign bonded and scheduled foreign cotton is expected to start, which is conducive to the port’s destocking for large storage capacity.