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

According to recent surveys, the amount of consigned cotton in China's bonded areas has sharply declined in June and July. Currently, only 42,000 tons of cotton remain in Qingdao’s bonded zone, while Zhangjiagang Free Trade Zone still holds approximately 25,000 tons. However, most of this cotton is owned by domestic enterprises, and the available foreign cotton for sale and circulation has become extremely limited. In recent months, ICE cotton futures have experienced some fluctuations, but prices outside the bonded area have remained relatively stable—only slightly lower than early July levels, by about 100–200 yuan per ton. Import and export companies continue to operate on schedule, with no signs of a shortage in July. A major company in Ningbo recently held around 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 trade deal with a large textile company in Binzhou, Shandong. The transaction was conducted under its own quota, with delivery at Qingdao port, and the price was adjusted based on domestic cotton market trends. On July 21st, the net port weight prices for SM and M grade cotton in China’s main ports were set at 17,500–17,700 yuan/ton and 17,200–17,400 yuan/ton respectively. Considering a 200–300 yuan/ton discount, these prices are still 600–800 yuan/ton lower than equivalent domestic cotton. Due to the widening supply-demand gap in China’s domestic cotton market in the 2010/11 season, India’s cotton export policy remains unclear. There has been no official confirmation regarding adjustments to the 2,500 rupees/ton export tariff or the timeline for exports. As a result, small and medium-sized traders are cautious when dealing with Indian cotton. This uncertainty makes it difficult to be optimistic about the outlook for Sinotrans cotton shipments. 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 lower prices. However, no official response has been received yet. According to statistics, the country issued a total of 3.5 million tons of cotton import quotas in 2010. By June, only about 1.545 million tons had been actually imported, leaving nearly 2 million tons unused. Industry analysts believe that if domestic cotton enterprises focus on importing more cotton in 2010, it could impact the pricing of new cotton, Xinjiang cotton sales, and the outflow of cotton from Xinjiang. Therefore, the release of 600,000 tons of national reserve cotton not only helps maintain market stability but also supports the collection and storage of Xinjiang cotton for the 2010/11 season. This, in turn, contributes to the stability of the cotton industry and social order in Xinjiang.