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High stocks indicates ease of tight cotton situation
28
Mar '13
As of a March 6 survey, average cotton inventory of sample surveyed enterprises was 40.8 days (including imported cotton at ports), an increase of 4.2 days from the previous month, and an increase of 3.5 days compared with the average level of last three years.
 
At the same time, national cotton industry held an inventory of 89.3 million tons, an increase of 11.5 percent from the previous month.
 
The increase in cotton inventories with textile mills indicates that the tight cotton situation faced by domestic enterprises in the past has effectively improved.
 
China began implementing the strategic policy of releasing state cotton reserves at the beginning of the year, in order to solve the problem of cotton shortage of textile enterprises, caused by large-scale purchase of domestic cotton. 
 
It is the first time in history that the State has purchased domestic cotton and also released cotton from its reserves, simultaneously. Currently, the daily cotton market turnover volume is around 20,000 tons. 
 

Fibre2fashion News Desk - China


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