According to Chinese Customs statistics, in March 2024, China imported 167,000 tons of Brazilian cotton, an increase of 950% year-on-year; From January to March 2024, the cumulative import of Brazil cotton 496,000 tons, an increase of 340%, since 2023/24, the cumulative import of Brazil cotton 914,000 tons, an increase of 130%, higher than the same period of the United States cotton imports 281,000 tons, due to the high base, the increase is large, so Brazil’s cotton exports to the Chinese market can be described as “full fire”.
Brazil’s National Commodity Supply Company (CONAB) released a report showing that Brazil exported 253,000 tons of cotton in March, of which China imported 135,000 tons. From August 2023 to March 2024, China imported 1.142 million tons of Brazilian cotton.
It is worth noting that in the first four weeks of April 2024, a total of 20 working days, Brazil’s unprocessed cotton exports showed strong growth, and the cumulative shipment volume was 239,900 tons (Brazilian Ministry of Commerce and Trade data), which was nearly 4 times that of 61,000 tons in the same period last year, and the average daily shipment volume surged 254.03%. China remains the most important destination for Brazilian cotton exports and shipments. Some international cotton merchants and trading enterprises predict that compared with the continuous decline of Brazilian cotton arrival/storage from March to July in previous years, the probability of Brazilian cotton import “carry-over” market has increased significantly this year, and will be a “off-season is not weak, leap-forward speed” state.
According to the analysis, from August to December 2023, due to the serious port congestion in Brazil, the Red Sea crisis and other factors caused by the delayed shipment of Brazilian cotton, the contract for delivery is restarted again, so that the peak of Brazilian cotton export this year is delayed and the sales cycle is extended. At the same time, since December 2023, Brazil’s cotton base difference has been reduced from the previous few months, and the same index of American cotton and Australian cotton base difference has widened, Brazil’s cotton price performance has rebounded, and its competitiveness has increased, and the impact of high temperature, drought and low rainfall on cotton quality indicators in the southwest cotton region of the United States in 2023/24 has also given Brazil’s cotton the opportunity to seize the Chinese consumer market.
Post time: May-17-2024