Cotton Prices: Excessive Domestic And Foreign Prices, High Tariffs Can Not Resist The Invasion Of Cotton

Can tariffs of 40% of domestic and foreign cotton price differentials against cotton invasion?

After China made it clear that it would no longer issue quotas for imported cotton this year, it appeared to be limited. Spin The factory buys the imported cotton, but in fact, the textile factory "curve saves the nation", bypassing the quota quota barrier and chooses to pay 40% import tariff to let the cotton pass smoothly.

Of course, textile mills have a reason to throw away their arms and pay 40% of the customs purchase of cotton. It is understood that at present, there are about 100 thousand tons of full duty cotton orders, and the order is placed near the 70 contract of the ICE futures contract in December.

According to the author's understanding, the price of cotton auction for Xinjiang Corps is determined by the textile mill as a way to judge whether the total tariff is applied. Imported cotton The standard.

According to ICE futures 70 cents, that is, the spot price is about 80 cents, the general trade port pick up price of outer cotton is 17784 yuan / ton. Compared with the current competitive price of Xinjiang corps at least 19000 yuan / ton, the price advantage is obvious. Once the ICE futures exceed 75 cents, that is, spot more than 85 cents, the general cotton trade port delivery price will reach 18883 yuan / ton, although it is still low, but considering the factors of installation date and spinning cost, the textile factory's purchasing interest will be greatly reduced.

It is noteworthy that since the beginning of the purchase and storage, most of the high-quality cotton in the country has entered the reserve bank. The remaining high-quality cotton is difficult for the textile mills to accept. If the order requirement is high, as long as the import price of the outer cotton does not exceed the storage price of 20400 yuan / ton, the textile factory will still import the high quality foreign cotton with the full tariff import price, of course, this is a very special case.

According to industry sources, at present, the full import order of cotton imports is all spot shipment, and the textile factory not only controls market risks, but also controls policy risks. If the future national policy There is no change. If ICE futures do not exceed 75 cents, if domestic cotton prices remain high, full tariff orders will continue to emerge. By the end of this year, the volume will reach 200 thousand tons or more.