A Large Backlog Of Domestic Imported Cotton Leads To The Tightening Of Cotton Import Quota

It is reported that the price difference between domestic and foreign cotton is still widening. The latest price information shows that the price of domestic Xinjiang cotton per ton is about 4600 yuan higher than that of imported cotton. The huge price difference has attracted a large number of traders to hoard imported cotton and try to resell it for domestic profits. However, the cotton import quota has blocked them out. At present, in the warehouse of Qingdao Free Trade Zone, imported cotton has piled up like a mountain, and the price of cotton import quota has also risen with the tide. The market has even speculated about 4000 yuan per ton.

At present, more than a dozen cotton bonded warehouses in Qingdao Free Trade Zone are almost fully occupied, and the storage cost has also increased from 70 or 80 cents per ton per day to 2 yuan. A staff member told the reporter that the warehouse resources are very tight now.

Reporter: Do you still have a warehouse for cotton?

Staff: A few days ago, some warehouses were released, but they were still nervous.

Li Qunxian, deputy general manager of Ningbo Qiancheng Import and Export Company, said that the price difference between domestic and foreign cotton is currently around 4600 yuan per ton, which has attracted many traders to participate in arbitrage. However, in order to protect the interests of domestic cotton farmers, the country adopted quota control, so a large number of imported cotton fell into the hands of traders.

Li Qunxian estimated that about 600000 to 700000 tons of imported cotton were overstocked in the bonded area by traders across the country, while in Qingdao, an important cotton import town, warehouses within a few hundred kilometers around were also occupied.

Li Qunxian: This year, a large amount of cotton will be stored in Jiaozhou, Zibo, Weifang, Gaomi, etc., and the warehouses hundreds of kilometers away from the surrounding areas are already full.

Because the price difference between domestic and foreign cotton is too large, even if the cotton is imported according to the quota, the price of imported cotton is still much cheaper than the domestic cotton price after paying the tariff VAT. Therefore, the textile enterprises that get the quota now will sell it in the market if they do not use it, so the price of the quota will go up all the way.

Li Qunxian: The quota is limited to 4000 yuan per ton, but you can't buy it. Because the quota price is too high, some people are desperate to create some fake quotas.

On the one hand, the quota was hyped, on the other hand, it was a large loss of cotton trade enterprises. Because many traders did not find enough quota when the deadline of bank letter of credit came, they had to sell cotton at a low price at the last moment.

Li Qunxian: Anyone who makes cotton will lose a lot this year because we sell it to Textile enterprises Textile enterprises will not buy from us without quotas. You should have sold everything for 20000 yuan, but you should have sold it for only 15000 yuan. It should not have been so cheap in China, but it was forced to die. The bank letter of credit allows 90 days. If you don't pay back the money in 90 days, your enterprise will die.

Li Qunxian sighed that regulation policies should also pay attention to the survival environment of traders.

Li Qunxian: It's not that traders are bad people. Traders are also a necessary link. It can't be said that there is no trade link between producers and users. Let's not go directly to textile mills to buy clothes.

The difference between domestic and foreign cotton prices is too large, which also brings great pressure to domestic cotton textile enterprises. Zhao Xiuzhen, general manager of Shandong Hengfeng Textile Company, complained to reporters that their company did not get the quota and could only scrape by.

Zhao Xiuzhen: Now overseas Cotton price Low. Our domestic cotton yarn cannot be exported. Our company is still alive, but many nearby enterprises have closed down. Because the cotton textile industry still relies on exports, the pressure on the entire cotton textile industry is too great now.