Cotton being exported to China has increased as the cotton traders and international businessmen in Qingdao, Zhangjiagang, Shanghai reported that the imported bonding cotton stuck in custom clearance has been cleared and recovered. This diminishes the rivalry between India and China when it comes to cotton as the Chinese ports’ cotton stocks are primarily from India.
Due to the increasing price gap between international and domestic cotton, the cotton imported from India has proved to be favorable for the productive transactions in textile factories and middlemen.
According to a cotton firm based in Jiangsu, the trading of premium quality cotton from India is gaining more attention since October 20th. This has also enabled to overcome the loss of Brasilian cotton second to the loss of US cotton in China in October and November. However, there has been an increase recorded in the price gap between Indian and Brazilian cotton in the previous two months up to 800 and 1000 RMB/ton.
Moreover, other advantages are the short travel distance and the increase in freight rates which supported the increased rates in Indian Cotton. Therefore, Indian cotton shipping and distribution is commonly relative to American cotton and Brazilian cotton. The amount of bonding cotton, which is mainly contributed by US cotton, Brazilian cotton, Australia’s cotton, Indian cotton, African cotton, central Asian cotton and EU-cotton, is estimated at 410-440 million tons in China’s major ports by the end of December’20.
