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Limited scope for increase of cotton price in China
12
Mar '13
The scope for increase in prices of cotton in Chinese markets is limited in the short-term.
 
Firstly, there is no significant improvement in orders received by downstream textile enterprises, and hence their enthusiasm in procurement of cotton is not high. At present, most cotton procurement by these enterprises is limited to their immediate requirement.
 
Secondly, the release of cotton from state reserves is progressing in an orderly manner, plus there is a gradual increase in arrival of foreign cotton, which together ensures adequate supply in the market.
 
The above two reasons are sufficient to suppress cotton prices and therefore there is a limited scope for rise in prices of cotton in the Chinese market in the short term, according to experts.
 
In fact, over the last few days, there has been a marginal decrease in offers for imported cotton at Chinese ports.
 

Fibre2fashion News Desk - China

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