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Bonded cotton stocks at Chinese ports on the rise
Jun '12

Cotton stocks in bonded warehouses at Chinese ports are increasing in June, when compared with the previous month. The main reason for this is the shortage of import quotas and sluggish atmosphere over the whole market.

Shipment of Indian and US cotton continues to arrive in large volumes and inventories of bonded cotton continues to increase. A huge volume of cotton has piled up, some of which have arrived more than two to three months back.

According to foreign cotton traders, nearly 60 to 70 million tons of cotton have accumulated at bonded warehouses, which will prove difficult to sell at a later date. Each passing day increases the cost of holding on to the cotton, they say.

Foreign traders say that cotton shipments in June and July will still continue to arrive from India and US, but expect lint grade to decline.  

Fibre2fashion News Desk - China

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