Foreign Cotton Imports Are Advancing Vigorously. "Red May" Is Still Available.

According to customs statistics, in April 2019, China imported 180 thousand tons of cotton, an increase of 20%, an increase of 63.6% over the same period last year.

Since 2018/19, China has imported 1 million 440 thousand tons of cotton, an increase of 80.7% over the same period (of which 840 thousand tons of cotton imported in, an increase of 85.1% over the same period last year).

Since July 6, 2018, China has imposed 25% tariffs on US cotton imports, which not only led to a large number of contracts signed in the 2018/19 cotton textile import contract, but also extended to the new year or a direct breach of contract, and most Chinese textile enterprises and traders removed the US cotton from the list of imports. The actual import volume of US cotton in July 6, 2018 was "down again and then three". However, the import of cotton in China has been advancing vigorously and unstoppable. The growth of imports from Brazil cotton, Australia cotton, India cotton, West African cotton, Mexico cotton and Greece cotton has not only fully filled the "seats" of the US cotton, but also the spillover effect is very obvious.

Qingdao, Zhangjiagang, Guangzhou and other cotton traders said that because of the violent decline of ICE cotton futures in May, on the one hand, the domestic and foreign cotton price differentials expanded stage by stage, and cotton related enterprises used 1% tariff quotas or advance "overdraft" sliding tariff quotas to sign import bonded and spot cotton; on the other hand, a certain amount of ON-CALL point price contracts were quickly concluded because of ICE's deep fall.

Therefore, it is estimated that China's cotton imports will still be more than 150 thousand tons in May. India cotton and Brazil cotton will become the main force for signing and customs clearance, and the quotations such as Wu cotton, West African cotton and Greek cotton will continue to be explored.

From the survey point of view, most of the international cotton traders and importers in May began to pre sell the Australian cotton in 2019 (the shipping season was concentrated in 7/8/9 months) and Brazil cotton (the shipping season was mostly in 10/11/12 months), and the price, quality and shipping date were particularly important for buyers.

The Sino US trade negotiations were abrupt changes. When the US cotton contract was expired and postponed, it was difficult to implement the "cotton trade contract". The Chinese enterprises were concentrating on the purchase of bonded products and the "cotton trade" at the right time. (the main reason is that India cotton, Brazil, Australia cotton and so on). The two reason is that Brazil cotton is seriously inadequate due to the lack of pport capacity and the quality of cotton is dropping. Therefore, the quotations such as FOB, CNF and CIF have obviously decreased, and the attraction to the buyers has increased. The three is that the reserve cotton wheel has been launched in May 5th, and the pace of importing some textile enterprises has not stopped because of the high demand for the base price and the replenish of low grade stocks. Four, there is a worry about the depreciation of the RMB exchange rate. Some traders and textile enterprises have to speed up the clearance of foreign cotton, and speed up the clearance of foreign cotton as far as possible, so as to reduce the cost. As for the reason why cotton imports continue to blowout in April, I think the following points can be summarized as follows: 1.