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Chinese cotton prices still on downslide
08
Aug '11
It is reported that domestic cotton price is still declining at the rate of 200-300 Yuan / ton every week, as sales situation is not showing major improvement.

At the same time, cotton prices in India and other countries are falling to a level lower than China's domestic price.

Industry sources believe that it is hard for cotton demand to recover in domestic and international cotton market in a short period, which will continue to suppress cotton price.

Rising labor costs makes it difficult for the textile industry to extend its original model of low value-added and low-cost production. So, it needs to speed up industrial restructuring.

Some industry insiders believe that presently, downstream industries of China's cotton industry are facing the most difficult period and need handholding from the state.

They expect that the relevant government departments should fully understand the difficulties of cotton spinning business, and help the industry weather the storm.

Fibre2fashion News Desk - China

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