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Release from reserves may impact cotton prices in China
May '13
Since September last year, about 1.781 million tons of cotton released from the state reserves has been purchased by textile firms.
The Chinese Government is likely to release more cotton from its reserves in the coming days, as the goal is to release about 4.5 million tons of cotton by July-end this year.
Such release of cotton from the state reserves is expected to impact the prices of cotton in China, according to analysts.
Last month, the China National Cotton Reserves Corporation and the National Cotton Exchange jointly announced that as decided by relevant departments, the current round of cotton release from state reserves would continue till July 31, 2013.
The statement said that policies related to cotton release would be properly regulated in order to better meet the raw material needs of textile enterprises.
In addition to release of old cotton reserves, the Government would also release some cotton imported in 2011 and some cotton temporarily purchased in 2012.

Fibre2fashion News Desk - China

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