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Chinese cotton import quotas to have limited impact
11
May '12
The cotton market in China is agog with rumours on the volume of import quotas that the government will permit.

Fair estimates indicate that, the state will issue import quota for around 3 million tons. Most of which will be given to large cotton textile processing enterprises.

Currently the landed price of imported cotton already has increased. Price of good quality US cotton is more than 19,500 Yuan / ton and that of Indian cotton around 19,000 Yuan / ton.

There is still a large number of foreign cotton in bonded warehouses which are yet to receive clearance from the port authorities.

It is expected that traders will first absorb existing imported cotton inventories, even if the state issues quotas.

Analysts are therefore of the opinion that, even if the import quotas are issued, it would have limited impact on cotton prices.

Fibre2fashion News Desk - China

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