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Global merchants hoard cotton in China
14
May '12
Market reports suggest that global cotton merchants have hoarded cotton inside China, on expectations of a rise in prices.

But once new cotton import quotas are issued by the State, it is expected that these inventories will find their way in to the markets.

At the beginning of this year, China issued nearly 2 million tons of import quotas, of which 1.57 million tons has already been imported in the first three months of 2012.

Market experts aver that the government needs to issue additional cotton import quotas as soon as possible, so as to ensure smooth imports.

In the first eight months of the current cotton year beginning September 2011, China totally imported 3.4 million tons of cotton and is expected to reach 4.5 million tons by August, if same pace is maintained.

Fibre2fashion News Desk - China


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