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Cotton textiles may become costlier in China
Feb '13
Cotton textiles are likely to become costlier in China due to manufacturers preferring to use more synthetic fibres in view of the high cost of domestic cotton, according to a report released by the China National Textile and Apparel Council (CNTAC).
The report mentions that the Chinese textile industry was under increased pressure last year, mainly due to the widening gap between the prices of domestic and imported cotton and due to a slowdown in demand from international markets.
The study says the price of domestically produced cotton was about 45 percent more than the international price at the end of 2012, which seriously impacted the competitiveness of the Chinese cotton spinning industry.
Giving an analysis, Gao Yong, deputy director of CNTAC, said the CIF price of imported cotton, including tariff, is lower than 13,000 yuan/ton, while the purchase price for state reserves is 20,400 yuan/ton and selling price is 19,000 yuan/ton, thus the gap between domestic and imported cotton price is 6,000 yuan/ton.
Cotton inventories with several Chinese textile firms have already exhausted, but the companies are shifting to use of synthetic fibre, rather than purchasing cotton released from the state reserves, Mr. Yong said.
As a result, the use of cotton in apparels and other textiles is decreasing while the proportion of the use of chemical fibres is rising, he added.
Last year, the Government of China issued import quotas for 1.894 million tons of cotton, and in the absence of import quotas, Chinese textile enterprises had to buy domestic cotton at a much higher price.

Fibre2fashion News Desk - China

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