Port News: Recently, The Customs Clearance Between The United States And Cotton At Major Ports Has Almost Come To A Standstill

According to feedback from some cotton trading enterprises and international cotton merchants, since late April, the US dollar resources, RMB spot inquiries and shipments in China's main ports have remained flat and cold. Except for some just needed deals of Brazilian cotton, Turkish cotton, Australian cotton, Indian cotton, etc., the customs clearance of US cotton has almost stalled, and the high basis difference has led to the fact that US cotton is not subject to domestic small and medium-sized cotton textile mills Intermediary concerns.

From the survey, most of the cotton enterprises haven't adjusted the spot basis of cotton outside the port in the past half month. However, due to the relatively high cost of getting goods from some small and medium-sized traders, combined with the accumulation of financial costs, storage fees, etc., the "fast in and fast out" strategy has been followed by the substantial increase of tariffs on imported goods between China and the United States, and the cancellation of T86 in the United States The tariff policy and the recent strict control of entrepot trade in Vietnam, Malaysia, Singapore, South Korea, etc. have failed, and the shipment has been slow for several weeks in a row, so the current general pressure is high. If the main 2507 contract of ICE cotton period in the near future continues to be consolidated at 65-70 cents/pound, it is not ruled out that small and medium-sized traders will first reduce the base rate of bonded cotton and shipping cotton to stimulate transactions and achieve the purpose of reducing pressure

From the quotation of cotton enterprises, on April 28-29, Qingdao and Zhangjiagang bonded Brazilian cotton M 1-5/32 (strong 28-29GPT; Horse value 3.7-4.9) net weight quotation is concentrated at 74.74-76.44 cents/pound (basis difference is 7-8.7 cents/pound, and the direct import cost is about 13205-13500 yuan/ton under 1% tariff; Currently, all main ports have cleared Brazil cotton M 1-5/32 (Qiangli 28-29GPT) RMB price is about 15115-15315 yuan/ton (basis difference 2250-2450 yuan/ton, benchmarking CF2509 contract), and the price difference between the two is 1600-2100 yuan/ton; In Henan, Shandong, Jiangsu, Hubei and other inland warehouses, 3129B Xinjiang machine-made cotton (breaking specific strength 28-30CN/TEX) is priced at 13950-14150 yuan/ton (the basis difference is 1075-1270 yuan/ton, and the shipping cost is borne by the seller). Taking into account the difference in net weight and public weight settlement, the cost of imported Brazilian cotton under 1% tariff at the end of April was about 700-1200 yuan/ton lower than that of the mainland, which continued to narrow compared with the first half of April, and the competitiveness of foreign cotton continued to decline.