Exploring The Reasons For The Large Number Of Imported Cotton In China In June

< p > < strong > cotton resources are tight except for China's global market < /strong > < /p >

After P, May, foreign and foreign export enterprises continued to decrease their lint supply in 2013.

From China's a href= "//www.sjfzxm.com/news/index_f.asp" > imported cotton > /a > species, mainly cotton, India cotton, Australia cotton, Central Asia cotton and West Africa cotton, but as of June 20th, the signing volume and shipment volume of American cotton respectively accounted for 101% and 89% of the total export volume in the year of 2012/13 respectively, leaving only 344 thousand tons of cotton to be pported, while the buyers were mainly in Southeast Asian countries.

Due to the exportation of the domestic cotton export orders in India, the demand for cotton is in a rapid growth state. Under the tight situation of its own cotton resources, the cotton textile enterprises have been calling on the government to restrict the export of cotton. Their export policies are also in a state of swaying. The willingness of cotton merchants and processing enterprises to export after April has declined, and the low quality of India cotton in the China free trade zone has also aggravated the concern of foreign operation.

Although Australia cotton has arrived at the main port in China in 6-8 months, it is also difficult to digest the price of more than 102 cents / pound in China's large and medium-sized cotton mills, especially in the middle of May, as the price of Uzbekistan's cotton has blocked sales.

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< p > < strong > delayed shipment of bonded cotton and tight storage capacity in bonded area < /strong > /p >

//www.sjfzxm.com/news/index_cj.asp "> China's Port Bonded cotton < /a > storage capacity has broken through 300 thousand tons, 400 thousand tons or even nearly 500 thousand tons. In recent months, it has been" getting in more and less ". Especially, the sales of India cotton and American cotton are even more difficult in the past few months. Some traders even failed to make a deal in a week. Therefore, foreign businessmen and some importers asked the supplier to postpone shipment and delivery date later, plus the phenomenon of" cotton in full "and" India inside and outside hang up "in 4 and May. Some contracts were cancelled or pported to other Southeast Asian countries by foreign merchants and importers, and some of the West African cotton was also directly converted to Indonesia, Vietnam and Malaysia port. < p > April, < a href="

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< p > < strong > import enterprises' credit line is compressed and the letter of credit is under pressure. < /strong > < /p >

< p > because the national cotton store can be directly mortgaged without moving the Treasury after bidding, which has solved the short-term pressure of some cash flow enterprises. Therefore, the attractiveness of the LC90 day letter of credit buying cotton has decreased.

In addition, the "shortage of money" since May has had a great impact on many large import and export companies. The credit lines of some enterprises in Jiangsu and Zhejiang have been cut by 50%, and the importing companies have been lending or seeking other companies to open letters of credit on behalf of them, so that the contract can continue to be implemented. Some traders directly negotiate with foreign suppliers and suppliers to cancel the contract.

A company in Zhejiang originally had 5000-6000 tons of India cotton to Hong Kong before the end of June. However, due to the slow sale of bonded cotton and the compression of enterprise credit lines, the contract could only be pushed into operation in August.

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< p > < strong > the import quota is insufficient to restrict the entry of cotton customs into the domestic market < /strong > < /p >

< p > 4 and May, due to the small quantity of imported cotton sold in the 2011 year, and the large and medium-sized cotton mills with import quotas did not purchase the power of bonded cotton in the short term, so the quantity and quantity of the quota were not high.

Some enterprises are concerned about the 2013 cotton trade (November and later shipping date), plan to enter the market in 6 and July, and make hedging in ICE futures or Zhengzhou to avoid risks.

At the same time, since June, the relevant departments of the state have moderately increased the number of warehouses sold outside the reserve in 2013 according to the needs of cotton enterprises. The advantages in terms of price and quality have favored the < a href= "//www.sjfzxm.com/business/" > the national cotton store < /a >, and the bonded cotton and the sailing cotton are at a competitive disadvantage.

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