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 23rd Feb 2017

NAFTA renegotiation puts Mexico-US jeans trade at risk

The almost imminent renegotiation of the North America Free Trade...

Rick Helfenbein (left), president and CEO of AAFA, with Juan Estrada, chief of party, Hub; Courtesy: Hub

Apparel/Garments | On 23rd Feb 2017

AAFA inks agreement for best manufacturing in East Africa

The American Apparel & Footwear Association (AAFA) has entered into a ...

Mango vice-chairman and member of the board of directors Daniel Lopez (L) with Ananth Narayanan, CEO, Myntra & Jabong. Courtesy: Myntra

Apparel/Garments | On 23rd Feb 2017

Mango awards distribution & management rights to Myntra

Mango, the Spanish fast fashion brand, has awarded its master...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search