Cotton Imports Are Expected To Maintain A High Level In March.

According to customs statistics, the total import volume of cotton in China in 2020 1-2 was 410 thousand tons, down 19.6% from the same period last year. 2019/20 (2019.9-2020.2) has accumulated 820 thousand tons of cotton imports (2019.9-2020.2), a decrease of 26.1% compared to the same period last year. Brazil cotton, cotton, India cotton and Australia cotton are still the main force of China's cotton imports, the total import volume is about 379 thousand and 900 tons, accounting for 92.16% of the total; the number of imported cotton in general trade is 243 thousand and 600 tons, accounting for 59.11%; the import processing type of imported cotton is 57 thousand and 300 tons, accounting for 13.9%. Bonded areas, warehousing and re export of goods.


The industry believes that there are three points worth noting: first, the import of cotton in Brazil accounted for 56.57% in 1-2 months, leaving the US cotton, Australia cotton and India cotton far behind; two, the proportion of imported cotton imports from the bonded area reached 18.63%, indicating that in the late January, when the new crown outbreak suddenly broke out, some international cotton traders and domestic import enterprises promptly adjusted the direction and increased to Vietnam. Port transport in Indonesia and Pakistan; three, cotton import or import processing trade accounted for a significant decline in comparison with the fourth quarter of 2019, mainly due to the 1-2 month Spring Festival holiday and the outbreak of new crown pneumonia, resulting in a great impact on Global trade, production, transportation and exchanges.


Some cotton trade enterprises in Qingdao, Zhangjiagang, Shanghai and other places indicated that under the premise of holidays, epidemic situation and large enterprises' postponed resumption and resumption of production, the import volume of cotton reached 410 thousand tons in 1-2 months, which was not easy. Some people expected that, with some domestic textile enterprises and importers catching up the cotton import quotas before the end of February, the ICE collapse led to a large number of "ON-CALL" point price contracts. Passive transactions (spot or bonded cotton) and RMB exchange rate "derogate" and other factors are related. In March, when the main contract of ICE fell below 50 cents / pound, the first phase of trade between China and the United States was vigorously promoted, and the domestic textile production enterprises returned to the right track, the cotton imports would not be less than 200 thousand tons. In the first quarter of 2020, the volume of cotton imports is expected to exceed 600 thousand tons, becoming a landscape under the overall weakening cotton market, while the United States cotton will take Brazil cotton as China's import market. India's first "throne" challenged the short term export of cotton by "sealing the country, sealing the city and closing Hong Kong".