On the 17th, statistics from the Jiangsu Entry-Exit Inspection and Quarantine Bureau showed that as of the beginning of November, the bureau had inspected a total of 2,295 batches of imported cotton, weighing 70.03 tons, and worth US$1.456 billion. Compared with the same period last year, the weight decreased by 40.4%. The value of goods decreased by 31.2%. Next year, my country’s cotton imports will only be issued within tariff quotas, and the import volume will further decline.
Since the beginning of this year, Jiangsu’s cotton spot market has been in a downturn, with quality, quantity and price all on a downward trend. Especially since May, domestic and foreign cotton prices have been falling, with the current decline reaching nearly 4,000 yuan/ton.
When domestic cotton prices are higher than foreign cotton prices, cotton spinning companies tend to directly import cotton yarn. Moreover, due to the downturn in downstream textile and garment factories, they are facing inventory pressure and are generally under-operated, resulting in reduced demand for cotton. As the world’s largest cotton importer, any changes in my country’s international cotton demand will affect the cotton trade situation. Therefore, starting in May, the price of my country’s imported cotton has also begun to decline. In May, the average price of imported cotton in my country was 15,500 yuan/ton. By November 8 this year, it had dropped to 11,500 yuan/ton, a drop of 26%.
The Jiangsu Inspection and Quarantine Bureau reminded that the price of imported cotton has dropped significantly, which directly led to the decline in the quality of imported cotton. During the inspection this year, the Jiangsu Inspection and Quarantine Bureau found that the overall average non-compliance rate of imported cotton grades was 10.61%, a year-on-year increase of 2.27%, the overall average non-compliance rate of length was 7.66%, a year-on-year increase of 2.27%, and the overall average non-compliance rate of micronaire values. It was 4.51%, a year-on-year decrease of 2.59 percentage points. The overall average non-compliance rate of Qiangli was 4.04%, a year-on-year increase of 0.97%.
The quality of cotton from the United States, India, and Australia, which account for 79.5% of Jiangsu’s cotton imports, has declined to varying degrees. Among them, the average non-conformity rate of U.S. cotton grades increased by 5.23 percentage points, and the average non-conformity rate of length increased by 2.88 percentage points; the average non-conformity rate of Indian cotton increased by 2.05 percentage points, and the non-conformity rate of length increased by 4.54 percentage points; the non-conformity rate of Australian cotton grades increased by 2.88 percentage points. increased by 7.36 percentage points.
To this end, the Jiangsu Inspection and Quarantine Bureau reminds my country’s cotton import enterprises to be highly vigilant about foreign suppliers’ shoddy behavior, strictly sign contract terms, and beware of fraud. Once it is discovered that the quality and weight of imported cotton do not meet the contract requirements, you should seek help and guidance from the inspection and quarantine department in a timely manner, and recover the losses with the claim certificate issued by the inspection and quarantine department.
