6 In July, the number of consignment cotton in the bonded area of ​​China dropped significantly

According to the latest survey, the amount of consigned cotton in China's bonded areas has seen a sharp decline in June and July. Currently, only 42,000 tons of cotton remain in Qingdao's bonded zone, while Zhangjiagang Free Trade Zone still holds around 25,000 tons. However, most of these stocks are under the control of domestic cotton companies, significantly limiting the available cotton for sale and circulation. In recent months, ICE cotton futures have experienced some fluctuations, but prices outside the bonded area have remained relatively stable, only slightly lower—by about 100–200 yuan/ton—compared to early July. Import and export companies continue to operate as scheduled, with no signs of short-term supply shortages. For instance, a company in Ningbo holds approximately 30,500 tons of SM-grade U.S. cotton, West African cotton, and Indian S-6 cotton. In mid-July, it signed a 15,000-ton cotton deal with a major textile company in Binzhou, Shandong. The transaction involves its own import quota, with delivery at Qingdao port, and pricing is adjusted according to domestic cotton price trends. On July 21st, the net port weight of SM and M grade cotton in China’s main ports was priced between 17,500–17,700 yuan/ton and 17,200–17,400 yuan/ton, respectively. At this level, it is about 200–300 yuan/ton cheaper than the domestic cotton of similar quality, translating to a 600–800 yuan/ton discount. This price gap highlights the competitive advantage of imported cotton in the current market. Due to the widening supply-demand gap in China's domestic cotton market during the 2010/11 season, India's cotton export policy remains unclear. There has been no official announcement regarding adjustments to the 2,500 rupees/ton export tariff or the timing of exports, causing hesitation among small and medium-sized traders. As a result, confidence in the Sinotrans cotton transport outlook is low. Recently, many spinning companies have urged the government to extend the validity period of the 2010 import tariff quota until the end of February 2011, aiming to ensure that domestic mills can purchase cotton at favorable prices. However, no official response has been received yet. According to official data, China issued a total of 3.5 million tons of cotton import quotas in 2010. By June, actual imports reached approximately 1.545 million tons, leaving nearly 2 million tons of unused quotas. Industry experts suggest that if domestic enterprises focus on importing cotton in 2010, it could affect the pricing of new cotton, Xinjiang cotton sales, and the outflow of cotton from Xinjiang. The release of 600,000 tons of national reserve cotton serves two purposes: first, it helps stabilize the cotton market; second, it supports the collection and storage of Xinjiang cotton for the 2010/11 season. This move also contributes to maintaining stability in the cotton industry and social order in Xinjiang.