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National inventory of cotton industry declines
Oct '11
China's national inventory of cotton industry has declined both on month-on-month and year-on-year basis to nearly 829,800 tons on September 7, 2011, as per a sample survey carried out by national cotton market.

This is a reduction of 11.3 percent below the average of the previous three years. The decrease in stock levels points towards the businesses postponing their stockpiling this year.

The monthly sales rate of yarn was 100.9 percent, which is higher than the sales rate in previous month. Similarly, the monthly sales rate of fabrics was 92.5 percent, which is also more than the sales rate of previous month. This has led to a reduction in inventory levels and is forcing companies to renew their stocks.

As per the data of National Bureau of Statistics, August production of yarn fell 2.07 percent month-on-month, but increased 10.73 percent year-on-year. Likewise, August production of cotton fabric declined 2.99 percent month-on-month, but was up 6.94 percent year-on-year.

However, the growth rate in consumption of cotton is expected to be very slow owing to the impact of global economic slowdown.

Fibre2fashion News Desk - China

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