-Shanghai port cotton import volume dropped significantly

As one of the largest cotton import ports in my country, Shanghai Port imported a total of 784 batches of cotton in the first half of this year, weighing 217,300 tons, and worth US$462 million, a decrease of 59.79%, 54.57% and 58.57% respectively compared with the same period last year. The decline in import volume exceeded 50% for the first time since 2009.
The main reasons for the sharp decline in cotton imports: First, India’s cotton imports have dropped significantly. Due to strong domestic cotton yarn export orders in India, cotton demand is growing rapidly and cotton resources are tight. Cotton textile companies have called for restrictions on cotton exports. The country’s export policy has also been wavering, resulting in a decline in cotton merchants’ willingness to export. Cotton imported from India increased from the first half of last year. of 171,400 tons dropped to 58,600 tons this year. Second, changes in the national purchasing and storage policy this year, from guided price unified purchasing and storage to direct subsidies to cotton farmers, have caused domestic cotton prices to continue to fall, further narrowing the price difference between domestic cotton and imported cotton. If freight and quota costs are taken into account, imported cotton and domestic cotton Cotton prices are basically flat, and domestic customers expect cotton prices to continue to fall, so imports have dropped significantly this year.
At present,the imported cotton at Shanghai port shows two characteristics: First, the number of importing countries has decreased. Cotton imports in the first half of this year came from 21 countries and regions, 11 fewer than the same period last year, of which 5 came from Africa. Second, importing countries are concentrated. In the first half of this year, cotton imports from the United States and India accounted for 76.58% of total imports, a year-on-year increase of 0.93%. Among them, the United States accounted for 49.56%, a year-on-year increase of 6.59%, and India accounted for 26.97%, a year-on-year decrease of 5.69%.
In response to the above situation, the Shanghai Inspection and Quarantine Bureau has improved the efficiency of imported cotton inspection and supervision through the following measures: First, it regulates the behavior of inbound cotton storage units in Shanghai. According to the General Administration of Quality Supervision, Inspection and Quarantine Order No. 151 “Imported Cotton Inspection Supervision and Management Measures”, Inbound cotton storage units in the region implement record-keeping management, improve imported cotton inspection procedures, and shorten the inspection cycle. The second is to use the advantages of the inspection and quarantine department to provide information support and promptly deliver the latest imported cotton inspection and quarantine laws and regulations, market conditions, policy information, etc. to enterprises.