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Price of imported cotton continues to slide in China
Jun '12
The price of imported cotton is continuing to decline in China owing to a rise in stocks.
In April this year, less than 300,000 tons of cotton was stocked at Qingdao Port in China. However, the volume of cotton stocked at the port has more than doubled since then.
Cotton imports via Shandong ports rose by 81.8 percent year-on-year to 790,000 tons during January-April this year, as per Qingdao Customs data.
China imported 501,900 tons of cotton in May 2012, up 357,400 tons or 247.4 percent year-on-year.  In the first five months of the current year, it imported 2.579 million tons of cotton, a rise of 1.373 million tons or 113.9 percent year-on-year.
The massive import of cotton has led to a decline in price of imported cotton. In the last few months, the price of imported cotton has dropped by over 25 percent from 120-130 cents per pound to 90 cents per pound at present.
This will cause cotton traders to lose 3000 Yuan for one ton of cotton stocked at ports. The loss will be even greater if storage charges and bank interest are also taken into account.

Fibre2fashion News Desk - China

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