Home / Knowledge / News / Textiles / Cotton prices will gradually increase till 2021-22: Abares
Cotton prices will gradually increase till 2021-22: Abares
09
Mar '17
As demand outpaces production, cotton prices are likely to gradually increase, according to Abares, the official Australian commodities bureau. The forecast factors in expectations of continued declines in world inventories, which is projected to fall from a high of 24.3 million tonnes around two years ago to 16.0 million tonnes in 2021-22.

Cotton prices, as measured by the Cotlook A index, averaged 78 cents a pound this season, on an August-to-July basis. Abares forecast this price to average 80.4 cents a pound in 2017-18, and gradually rising to 88.0 cents a pound in 2021-22.

This also implies that the cotton price is likely to fall in the short-term as the Cotlook A index currently stands at around 87 cents a pound.

The demand for cotton will keep on rising despite favourable returns to growers. Global cotton consumption will, after a 7 per cent jump next season, rise by 2.4 per cent a year, spurred by "an expected rise in demand for clothing and textiles in Europe, the US, Japan and Australia". This will lead to an increased mill activity in top textile manufacturing nations including India, Bangladesh, Turkey and Indonesia.

"The textile and garment industries in these countries are expanding rapidly," Abares said, while flagging the prospect of "constrained" consumption in China, where a growing reliance on imported fibre will constrain industry competitiveness. "China is facing strong competition in the international textile market from neighbouring, low-cost Asian countries such as India, Bangladesh, Vietnam, Indonesia and Cambodia."

Meanwhile, supported by the improved production, and "strong world demand for high quality Australian cotton", Abares expects Australian exports to rise 44 per cent to 774,000 tonnes this season, and to 1.06 million tonnes in 2017-18. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Ahmad A. Al Sa’adi and Kwon Pyung-Oh display a comprehensive Memorandum of Understanding; Courtesy: Saudi Aramco

Textiles | On 21st Jul 2018

Saudi Aramco, KOTRA sign MoU for business cooperation

Saudi Aramco has signed an MoU with the Korea Trade-Investment...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search