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Chinese cotton prices face downward pressure
22
Feb '12
China's cotton prices face downward pressure, as demand remains weak, said a report of the China National Cotton Reserves Corporation.

Global cotton prices are in downturn as abundant supply puts pressures on domestic cotton market, the report added.

The Government began to purchase cotton from last September, which has provided some support to domestic cotton prices.

The report says that cotton demand is still weak, and is likely to go weaken further, if cotton futures prices rise.

The report says that 52 percent of local companies in the survey expressed a negative expectation on orders for the first quarter of 2012.

2011/12 cotton season imports are likely to reach 4.22 million tons, an increase of 64 percent year on year.

Cotton output is expected to be 7.55 million tons in the current crop year; an increase of 21 percent and demand is expected to be 8.7 million tons, down 6.0 percent.

China's cotton inventory is expected to be 5.28 million tons in the current cotton season, more than two times over the 2.13 million tons in the previous season.

Fibre2fashion News Desk - China

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