Home / Knowledge / News / Textiles / China begins releasing cotton from state reserves
China begins releasing cotton from state reserves
15
Jan '13
China has finally started releasing cotton from its reserves through auction on January 14, 2013.
 
The weighted trading price of cotton at auction was 18,405 yuan/ton, which was equivalent to 19,046 yuan/ton for grade 328 cotton, which was 143 yuan/ton lower than the CCIndex price on January 14.
 
At present, the supply of cotton, especially high-grade cotton, is limited, as most of the cotton has shifted to Chinese national reserves, which has accumulated nearly 8 million tons. Hence, the National Development and Reform Commission took the decision to release some cotton from the reserves.
 
Ahead of the start of auctions, the China Cotton Textile Industry Association and the National Cotton Exchange reviewed the qualifications of enterprises that would be allowed to participate in the auction.
 
As per the guidelines, the maximum bidding quantity for participating companies before March 31, 2013 should not exceed their two-month consumption, and the purchased cotton must be limited to their own use and not be resold. 
 
According to analysts, the Government wants to narrow the price gap between domestic and imported cotton.
 
If the state releases 3 million tons of cotton from state reserves and allocates 1 million tons of import quotas under 3:1 principle, the total supply will be 4 million tons, which will meet the consumption of enterprises for 6 to 8 months, based on current cotton use of textile enterprises.
 
Based on the CIF value of US imports at 85 cents/lb and releasing price at 19,000 yuan/ton, if the state releases 3 tons of cotton reserves and allocates 1 ton of import quota under floating tariff, the average cotton price will narrow down to 17,943 yuan/ton. 
 

Fibre2fashion News Desk - China


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search