Customs Data: Cotton Import Volume Exploded In July

According to customs statistics, China's cotton import volume in July 2024 was 199700 tons, an increase of 28.56% month on month and 80.77% year on year. Among them, the import volume of American cotton, Australian cotton and Brazilian cotton is 78300 tons, 55900 tons and 51400 tons respectively, and the import volume of Turkish cotton and Sudanese cotton ranks fourth and fifth. In that month, Australia's cotton import volume and import proportion not only exceeded Brazil's cotton (increased by 280.86% month on month and 99.68% year on year), but also reached the second place. The gap between Australia's cotton import volume and America's cotton import volume narrowed to 22400 tons, significantly accelerating the pace of catching up. India's cotton import volume continued to be left behind the top five, widening the gap with its competitors.

The proportion of Australian cotton imports in June accounted for 9.41% of the month, while in July it rose sharply to 28%, which impressed institutions and cotton related enterprises. Considering that the shipping date of Australian cotton in 2023/24 is in July or later, the current import of Australian cotton is the old cotton in 2022/23 and 2021/22. The explosive growth of Australian cotton imports in July may be related to the following factors:

First, since the Australian cotton producing areas have had relatively frequent rainfall since July, and floods have occurred in some areas, which not only has a certain impact on seed cotton harvesting, processing, transportation, etc., but also the industry has become increasingly worried about the Australian cotton grade and quality indicators in 2023/24. Therefore, the willingness to buy old cotton at bargain prices has increased.

Second, considering that new cotton has been listed in succession, the quotation of international cotton merchants and trading enterprises for old cotton in 2022/23 has been continuously reduced in the past month, which is basically in line with the same indicator in Brazil or even slightly lower, which is more attractive to cotton enterprises. From the quotation of some cotton enterprises, the current bonded Brazilian cotton in Qingdao Port is M 1-5/32 (Qiangli 28GPT) is priced at 79-80 cents/pound, while Australian cotton M 1-5/32 (Qiangli 28GPT) is priced at about 80 cents/pound at a lower price.

Third, from the feedback of some export-oriented textile and clothing enterprises, the customs of the United States/European Union and other countries have extended the import review and customs clearance period of non American cotton/non Australian cotton textiles and clothing (tracing orders), which may even result in late fees. Therefore, in order to reduce unnecessary trouble and affect contract execution, some textile enterprises prefer to "increase American cotton/Australian cotton, reduce Brazilian cotton" in their procurement. Of course, Australia's cotton import volume in July increased significantly month on month and year on year, which is also related to the issuance of 200000 tons of sliding tariff cotton import quota in 2024.