China Cotton Import Monthly Report – October

In October, domestic cotton price edged higher supported by reserve purchase, while international cotton price declined, enlarging the gap between them, and cotton import volume regained moderately. The monthly average import price decreased slightly and general trade remains the main channel, though in less share. Cotton arrivals from South hemisphere like Australia and Brazil continued to increase, while India cotton declined in the market. Import quota was used mainly in sliding duties. Qingdao and Shanghai are the top two largest destination ports, and Beijing and Shandong are the main buyers.

According to Customs, for October, China imported cotton of 272,000 ton, 19,000 ton more than last month by 3.5%; and 20,000 ton more on Y/Y level, by 7.8%. The average import price was 2,287 USD per ton, 71 USD down over September, down by 3%, and decreased by 27.7% on Y/Y level. The total import for the first ten months of 2012 was 4,301,600 ton, 95.8% up compared with the same timeframe last year. The first two month import of 2012/13 season was 535,000 ton and 5.9% up on Y/Y.

In October, feeding processing trade increased while goods under special customs supervision was stable and the other means declined. The general trade decreased to 60.8%.

Among import sources, Australia cotton continued to increase and remained the top, followed by US and Brazil with more shares.

The average import prices of different trading means in October all declined with one exception of 5% increase for Inbound and outbound goods in bonds warehouses. The decline for general trade, feeding processing trade and trade of processing by accepting customers?? materials are 3%, 1.9% and 5.9% separately.

The average import prices of five major sources all declined except 2.9% increase of US. The declines for Australia, India and Brazil and Uzbekistan were 2.3%, 14%, 2.6% and 19.2%.

Main destination ports are Qingdao, Shanghai, Nanjing and Tianjin, all four accounts for more than 80%??

Beijing and Shandong are the main buyers, accounts for two thirds, and the rest provinces accounts for less than 10%.