Chinese Buyers Will Slow Down: India Cotton Exports Will Face Pressure

Although the purchase and processing of cotton seed in some cotton areas in India has been slowly recovering since the middle of 11 months, the number of cotton that can be shipped in December is not as good as that of the fashion boats and the cotton delivery enterprises. In the case of some cotton mills, they are more reluctant to place orders. The second is the wide fluctuation of US dollar index, including the continuous passive depreciation of developing countries such as the renminbi and India rupees.

In December, the Fed raised interest rates seemed to be "in the loop" (some financial and investment institutions in Wall Street believed that the United States will raise interest rates by 100%), and the impact on cotton and other commodities needs to be observed and waited.

According to the survey, at the end of November, some India ginning factories and exporters quoted as follows: (CNF):S-6 Super M 1-5/32, S-6 Super M 1-1/8, respectively, 76.08 cents / pound, 75.50 cents / pound (shipping date in December), BCI CottonM CottonM, and the price quoted by them were 76.82 cents / pound, 76.92 cents / pound respectively, while the quotation for the "Qi" was "cent / pound".

From the quotation alone, the difference between India cotton S-61-5/32 "and" 12/1 EMOT "SM 1-5/32" and "C/A SM 1-5/32" has reached 6-6.2 cents / pounds, 7.5-7.8 cents / pounds respectively. The advantage of India cotton price is very obvious, arousing the attention and enquiry of buyers including China, Vietnam, Meng Jia and other countries, but there are two factors that seriously restrict India cotton export. One is that although the impact of the new monetary policy is difficult to eliminate in a short time, at least about 100000 tons of exports with delayed shipment or cancellation have a lingering fear of buying.

Relevant departments to protect the interests of farmers and protect the cotton processing industry, since the end of November, the market rumors that "Pakistan has stopped issuing customs import licenses to India cotton" has resulted in a large number of India cotton contracts signed by top textile factories and traders can not be enforced. They can only be forced to postpone or cancel. Cotton mills in Pakistan can only buy cotton and domestic cotton imported from cotton or other producing areas. Meanwhile, domestic cotton prices in Pakistan continue to rise. In order to pass on production costs, the cotton mill is trying to raise cotton prices for FOB and CNF.

The cabinet of Pakistan indicated that it could only be modified after the cotton was completely digested. However, some India ginning factories indicated that the import and export of Pakistan's cotton imports was only an emergency and not sustainable. According to statistics, as of November 15th, the new cotton market in Pakistan reached 1 million 490 thousand tons and the target output was 1 million 877 thousand tons.

According to some cotton traders in Qingdao, Zhangjiagang and other places, 2016/17

The port bonded volume or the number of bonded ports increased significantly in the year 2015/16. In December, a small amount of cotton arrived in India was favored by the high spinning yarn and combed yarn enterprises due to the high horse value, short length and low fracture strength (28GPT or so). Some Chinese ginning mills and cotton merchants also discussed that Chinese buyers should focus on ordering cotton for 1/2/3 months.

One is due to the 2016/17 year.

In terms of grade and quality, "no force", Xinjiang's southern hand picked cotton can only be considered "poor" in terms of the strength, length and other public inspection. Therefore, even though the departments concerned have made clear the launch of the national cotton store in March 6, 2017, some domestic organizations and operators still judged that the shortage of high quality cotton in 2016/17 will break out after May; secondly, the export pressure of India cotton will be delayed, the price expectation will be raised, and the advantages of price and pportation will be prominent.

Taking the current S-6 1-5/32 quotation of about 76 cents / pound as an example, the cost of customs duties after 1% customs clearance is only 13000-13100 yuan / ton (excluding the quota pfer price), and the difference between the "double 28/ double 29" cotton price in the inland Bank of Xinjiang is over 3000 yuan / ton. How can the domestic textile enterprises be unmoved? Third, as at the end of the month of 11, the US cotton contract has been exported around 60% in the year of 2016/17. Considering the quality and shipment of the flowers in the middle and later stages, the Chinese buyers will slow down the order, "the first half of the US cotton run, the export pattern of India cotton run half a half" or the same pattern.