Home / Knowledge / News / Textiles / European crisis fuels cotton, yarn prices to fall in China
European crisis fuels cotton, yarn prices to fall in China
Nov '11
The ongoing debt crisis in several countries of Europe, along with a slowdown in the US economy, has indirectly resulted in plummet of cotton prices in China.

There is a change in consumer behaviour in Europe and the US, who are spending less on apparels. This has seriously affected China's textile and garment exports.

The decrease in demand for cotton products in the US can be seen from the fact that the US worldwide imports of cotton products declined by 11.18 percent year-on-year from January to September this year.

Textile and apparel orders received by China have not been optimistic since April this year. The number of orders dwindled in the third quarter and a there was further decline in October. The rapidly reducing textile and apparel export orders from the EU and the US indicate that the Chinese textile and garment exports will remain weak in the first half of 2012.

As a consequence of the slump in textile and garment exports this year, the demand for cotton by local fabric and garment manufacturing companies had declined, causing the price of cotton to plummet in the Chinese market.

In order to ensure stability to cotton production and price, the Chinese Government launched a temporary cotton storage plan on September 8, under which the Government is procuring standard grade lint at 19,800 yuan/ton.

According to the China National Cotton Reserves Corporation, the price of cotton yarn will continue to fall in China, as the sales of yarn and fabrics are still sluggish. In addition, some upstream and downstream textile enterprises have ceased production owing to high inventory of finished products.

On the supply side, global cotton production is adequate. In October, the US Department of Agriculture estimated the 2011 cotton stock to increase 22.02 percent compared with 2010.

Thus, the lack of demand owing to European debt crisis and adequate supply will mean that the price of cotton and yarn will not increase in near future.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 24th Jun 2017

JD enters into strategic partnership with Farfetch

E-commerce giant, JD, China's largest retailer, and Farfetch, the...

Textiles | On 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Interviews View All

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mike Hoffman
Gildan Activewear SRL

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search