US Cotton Import Costs Rise

- Sep 26, 2018-

  The United States imposes tariffs on 200 billion imports of China, including cotton and textile products. In recent years, China has imported more than 100 tons of cotton and the United States cotton accounted for half of the total imports. According to the latest statistics of the Customs, China's total imports of cotton from January to July 2018 were 820,000 tons, an increase of 13% compared with the same period last year. (2017.9-2018.7) China's cumulative import of 1.17 million tons of cotton, an increase of 14% year-on-year, China's import of American cotton in 2017 almost doubled year-on-year, in the United States cotton quality and price is better than other importing countries in the context of the United States cotton import volume is still expected to increase in 2018, but after the import tariff increases, the quota of import of American cotton tax. The rate will rise from 1% to 26%, and the corresponding import cost will directly increase by more than 3,300 yuan/ton. The quantity of American cotton imports may be at a standstill. In addition, since the large-scale dumping of Chinese cotton stocks since 2016, the proportion of Chinese cotton stocks has declined. It is estimated that about 2.6 million tons of cotton will be dumped this year, and the surplus of the national cotton stocks will be about 2.4 million tons. It is estimated that after 2019, the possibility of net cotton put into state cotton storage will be small. In order to ensure national reserve or rotation, the gap between domestic supply and demand will be filled by imported cotton. Non cotton and other new issuance of 800 thousand tons of quasi tax quotas, or relatively good price relatively low India cotton.