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China & synthetics to influence cotton outlook in 2013
14
Feb '13
“Cotton is unlikely to reclaim market share unless its price trades below polyester”, said Gary Adams of Memphis-USA based National Cotton Council (NCC).

“However, in recent months, cotton prices have moderated, which is stabilizing cotton’s market share. This will lead to a modest growth in the domestic consumption of cotton in the United States this year and overall, global cotton mill use will increase this year by 2.5% from 2012” he adds.

According to NCC, China’s current cotton policy puts stress on China’s textile mills enabling their shift towards synthetics. The uncertainty on the release of cotton from national reserves in China adds to the complexity.

According to NCC, China will continue to build its cotton reserves reaching a level of 38.8 million bales (480 lbs each) by 2014.

NCC estimates that in 2013, mill use in countries other than China is expected to increase while production will decrease. Cotton mill use in Pakistan and India will see good growth this year.

The Cotton Outlook was presented by Gary Adams, Vice President, Economics & Policy Analysis of the National Cotton Council at the council’s 75th annual meeting in Memphis recently.

Seshadri Ramkumar


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