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Chinese Feb cotton stocks below four year average
02
Apr '12
The Chinese textile industry held 858,600 tons of cotton inventories in February. The growth was very limited compared with 841,700 tons in January.

However, it was well below the average level of around 1.18 million tons over the same time in the past four years, says the Cotton Information Website.

In the same month, yarn inventory fell from 21.61 days in January to 20.99 days, but fabric inventory rose from 20.93 days to 26.39 days.

At present textile enterprises have received enough production orders, but generate inadequate profits.

As of March 26, accumulated state cotton reserves exceeded 3 million tons. At present, domestic cotton price shows significant premium over international price.

The market widely expects that China will further issue import quotas in April and May, after the completion of state purchase and storage.

By that time, price of foreign cotton is likely to be driven higher by strong demand in domestic market.

Fibre2fashion News Desk - China

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