India Cotton Continues To Decline, Yarn Export Competitiveness Further

According to some cotton traders in Qingdao, 12 International Cotton Traders and large and medium-sized import enterprises in China started to "reserve" better bonded warehouses (easy to get in and out goods and moderate storage prices) in the middle of next month. Some bonded warehouses and interim warehouses also actively clean up and straighten out cotton and so on, and wait for 2016/17 cotton to arrive and store in the new year.

But cotton business is basically the same as 2015/16 operation this year. The sales focus is on the sailing date and spot shipment of cotton in the far months. As far as possible, the amount of bonded volume can be reduced. On the one hand, the prediction of China's cotton import volume in 2016/17 will not exceed 1 million 100 thousand tons (2015/16 only imports 960 thousand tons) on the one hand.

According to the quotations from several foreign businessmen and importers, the shipping dates of S-6, J34 and DCH32 were postponed to 1/2 in December except for MCU5 in India cotton. However, as at the end of December, only a small amount of India cotton arrived in Qingdao (Guangzhou, Zhangjiagang) and so on.

Since late December, the quoted price of S-6 1-5/32 "," S-6 1-1/8 "and" BCI 1-1/8 "of the Far East port in January has been stable at 76.70-76.90 cents / pounds, 76.40-76.60 cents / pounds and 77.50-77.70 cents / pounds (CIF); while December, the quotations for MCU and CIF are in the cent / pound and cents cents / pound; the difference between January shipment and the same period of ship's ship is up to cent / pound, but it is still lower than the average price of pound / pound in December.

Xiaobian thinks 1 and February.

The probability of further enhancement of the export competitiveness of gauze remains larger:

1. The State Food Security and Research Department of Pakistan has recently said that India cotton will be exempted from duty free until all the new cotton sales are completed in China.

This is the first official statement made by the Pakistani government since the end of November that Pakistan ceased issuing customs import licenses to India cotton. At least in the short term, India cotton was blocked outside the "gate", and the blow to India ginning factories and manufacturers was self-evident.

Two, India's new cotton market has been postponed and affected by monetary policy. Some cotton mills and middlemen imported cotton in advance (mainly American cotton, Central Asian cotton and West African cotton), which is equivalent to a "bomb" for the India cotton market which should have supplied more than needed. India cotton, which has been pushed to the international market, will increase significantly.

Three, the US stock index and the US dollar index rose and the Federal Reserve raised interest rates. The expansion of the rupee depreciation rate in India was a great success for cotton and cotton yarn exports.

Therefore, it is foreseeable that the price difference between India cotton and American cotton will continue to widen in 2017, and the cotton consuming countries such as Vietnam, Bangladesh and Indonesia will have stronger expectations of "abandoning American cotton and buying India cotton".

Industry analysis: on the one hand, India is new.

The impact on the industrial chain is still fermenting, and the progress of seed cotton sale and the rate of start-up of cotton ginning workers are seriously lagging behind. The domestic cotton mill has to sign the 2016/17 cotton trade "pition". The export contracts for shipment and delivery in December have been "wasted", the buyer can only cancel or postpone shipment; on the other hand, because of the large scale of the RMB,

Some foreign and foreign ginning mills and exporters are not eager to ship ahead of time, but "can drag on".

Traders in Shandong, Jiangsu and other places estimate that after mid January, there will be 2016/17 EMOT and India cotton S-6 arriving in succession, while the GM and SM grade Ukrainian cotton must wait until the end of January.

In 2017, according to the Chinese government's accession to the WTO, it promised to issue a 1% tariff import quota of 894 thousand tons, plus about 15-20 tons of "extended" quota, with a total volume of 105-110 million tons; on the other hand, China's port charges were on the high side.

Such as storage in Southeast Asia ports (such as Klang, Hu Zhiming, etc.) not only lower storage costs, but also be able to pfer to Hong Kong at any time. After all, the focus of global cotton imports and consumption has shifted to Southeast Asian markets such as India and Vietnam since 2014.

For more information, please pay attention to the world clothing shoes and hats net report.