China Cotton network news: According to Jiangsu and Zhejiang, Shandong and other places some cotton textile enterprises and cotton traders feedback, since December 2023, China’s main port bonded, spot, shipment of the United States Pima cotton and Egypt Jiza cotton order sales volume is still relatively rare, the supply is still mainly in the hands of a few large cotton enterprises, other middlemen to enter the market, participation is relatively difficult.

Although the imported long staple cotton lasted for more than two months in a state of little market prices, only just need a small amount of inventory, international cotton traders/trading enterprises down the Pima cotton, Jiza cotton net weight offer, but it is still significantly higher than the domestic cotton enterprises to bear the upper limit, and compared with Xinjiang long staple cotton prices are also at a disadvantage.

On November 23, 2023, the annual meeting held by the Alexandria Exporters Association (Alcotexa) announced the specific rules of the 40,000 tons export quota system, of which the largest export enterprises in the past five years (according to statistics, there are 31) export quotas of a total of 30,000 tons. Other units involved in the export business (69 according to statistics) can export a total of 10,000 tons of Egyptian cotton.

Since mid-October 2023, except for a small amount of spot shipment of cotton, the Egyptian cotton export registration business has been suspended, as of now, in addition to a small amount of Egyptian SLM length 33-34 strong 41-42 medium long staple cotton can be supplied at the main ports in China, other grades, indicators and cargo resources are almost difficult to find. A cotton company in Qingdao said that although the Egyptian SLM long-staple cotton quote is maintained at about 190 cents/pound, which is much lower than the port bond and the shipment date of the United States Pima cotton, it is also very difficult to ship due to low color grade, poor length and poor spindability.

From the traders’ quotation, the net weight of SJV Pima cotton 2-2/21-2 46/48 (strong 38-40GPT) in the United States on January 2-3, 11/12/January shipping schedule is quoted at 214-225 cents/pound, and the import cost under the sliding tariff is about 37,300-39,200 yuan/ton; The bonded US cotton spot SJV Pima cotton 2-2/21-2 48/50 (strong 40GPT) net weight quote is as high as 230-231 cents/pound, sliding tariff import cost of about 39900-40080 yuan/ton.

Industry analysis, due to the October to December shipment, to the port of the United States Pima cotton are “contract cotton” (Chinese textile enterprises according to demand in advance contract, procurement), so the direct customs clearance after arriving at the port, not into the bonded warehouse, so although China 2023/24 Pima cotton shipment volume is relatively strong, but the port long staple cotton inventory is significantly less.

Source: China Cotton Information Center