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China's cotton consumption to reduce significantly
Oct '12
China’s annual cotton consumption is likely to decrease considerably during the current season.
Firstly, the small and medium textile enterprises are expected to operate at 30-50 percent of their capacity due to slackening of demand, which would also have an impact on cotton consumption.
Secondly, the use of synthetic fibres, as an alternative to cotton, have risen to touch 1.5-2 million tons and the trend is likely to continue during 2012-13.
As a result, the consumption of cotton by textile mills is likely to dip by 20-30 percent compared to 2011-12 season. In other words, cotton consumption by textile mills would reduce by about 1.5-2 million tons during the current season.
Moreover, the prices of imported cotton and cotton yarn are currently 3,000-5,000 yuan/ton lower than the prices of domestic cotton and cotton yarn. This will affect the consumption of about 1.5-2 million tons of cotton in the domestic market.
Thus, both the above factors together are expected to reduce China’s cotton consumption this season by about 3-4 million tons, compared to previous season.

Fibre2fashion News Desk - China

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