Volatile fluctuations in prices had led to a tense market, despite the ‘absence of significant changes in market supply and demand,’ the association said.
There is limited room for growth despite the demand for cotton steadily rising this year, CCA said. "The supply of cotton is basically sufficient, and the abnormal fluctuations in the current market are influenced by speculation and other factors," it said.
China's cotton output this year is expected to remain stable, with weather disasters about the same as in previous years, the association said. Commercial inventories were about 2.87 million tonnes at end-April, about 1 million tonnes higher than the same time last year.
The comments came after the China National Cotton Reserves Corporation said it would soon restrict purchasing at its daily auctions to textile manufacturers, according to a statement from the company posted on industry website www.cottonchina.org.
The China Cotton Association said the state sales could be extended to end-September if market supplies were insufficient. (DS)
Fibre2Fashion News Desk – India