Industrial Cluster: Focus On The Current Situation Of Cotton Chemical Market Transactions In India And Other Regions This Year

According to the data released by the Indian Cotton Association (CAI), the export volume of cotton in 2023/24 (ending in September) is expected to be 2.6 million bales, unchanged from the estimate of last month (the export volume of cotton in the first nine months of the sales year increased by 68%, and the export volume in July and August showed a strong year-on-year growth), compared with 1.55 million bales in the same period last year. The increase of cotton surplus and the accelerated recovery of demand in Bangladesh, Vietnam and other countries led to a surge in India's exports.

Some private cotton processing enterprises and exporters in Maharashtra, Gujarat and other states of India believe that the total export volume of Indian cotton in 2023/24 will exceed 2.8 million bales, which is higher than the forecast of nearly 200000 bales in the CAI report. In addition to the large increase in exports to Bangladesh, Vietnam and China, the inquiry/purchase of Indian cotton with medium and low index prices by cotton enterprises in Pakistan, Indonesia, Thailand, Malaysia and other countries is also "unsatisfactory".

According to the data of the General Administration of Customs, since 2024 (2023.9-2024.7), China has imported 86000 tons of Indian cotton (including 73000 tons from January to July 2024). Although the year-on-year growth rate is 320%, the growth rate is only slightly lower than that of Australian cotton (370% of the year-on-year growth rate of Australian cotton), but it is significantly ahead of American cotton and Brazilian cotton. However, due to the low import base of Indian cotton in 2022/23, the import volume of Indian cotton in this year was "only high but not far", which earned growth but not quantity.

According to the industry analysis, the port bonded, spot and shipping Indian cotton has a low price ratio, which is not attractive to cotton enterprises. Qingdao and Zhangjiagang Bonded Indian Hand picked Cotton S-6 in Recent Two Days 1-5/32 (strong 29GPT) net weight is 81 cents/pound, while bonded Brazilian cotton M 1-5/32 (strong 29GPT) is 79.10-81.10 cents/pound, while American cotton 31-3/21-2 36 (strong 30GPT) is only 81.21-81.71 cents/pound.

At the same time, in recent years, influenced by weather, variety, management level and other factors, the grade and quality indicators of Gujarat S-6 have declined significantly, which is not attractive to Chinese cotton related enterprises.

The textile enterprises reported that the S-6 quality and color grade declined significantly, so it was not suitable to be used as the cotton blending for spinning medium and high count cotton yarn. In addition, cotton from Turkey, Kazakhstan, Argentina, Mexico, Sudan and other producing areas is not only increasingly shipped/bonded to China, but also increasingly replaceable to Indian cotton. The rapid growth of cotton resources in small production areas has effectively met the demand for "short orders, loose orders and small orders", and has a strong momentum to seize the market share of Indian cotton.