China: state reserve purchases by mill

Of the 1,311 enterprises registered by yesterday for participation in the daily state reserve sales auctions, 977 have actually bought cotton. The total purchased amounted to 1,636,318 tonnes, suggesting an implied entitlement to import quota (assuming all who participated are also eligible to receive import quota) of 545,439 tonnes, under the 3:1 principle (three tonnes of state reserve purchases give a one tonne, sliding-scale duty quota entitlement).

Sales from the state reserves during the period from January 14 to February 28 totalled 571,341 tonnes, those during March to 437,075 tonnes, those during April to 303,319 tonnes, and the current month’s figure up to yesterday was 339,907 tonnes (there is an unaccounted discrepancy between the sum of the daily auction sales and the aggregate amount shown to have been purchased by mills).

Weiqiao is shown to have been the biggest buyer at the auctions, having taken up 148,482 tonnes (implied import entitlement therefore 49,494 tonnes), or 22 percent of the theoretical amount it can purchase by July31. Several small companies have bought over 90 percent of their theoretical limits and 65 entities have procured 50 percent or more. The current list showing the entitlements and actual purchases by mill  is shown here.

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Posted in: Cotlook Headlines