Home / Knowledge / News / Textiles / Negative impact on cotton from China policy & PSF – ICAC
Negative impact on cotton from China policy & PSF – ICAC
02
Apr '14
The uncertainty on how China will handle its large reserves next season and the significant gap between polyester and cotton prices does not bode well for cotton consumption in China and, by extension, countries that have heavily exported cotton to China in recent seasons.
 
In 2013/14, the Cotlook A Index has averaged 90 cents per pound while polyester in China averaged 73. However, in March 2014, the price of polyester in China dropped below 70 cents per pound, to about 66 cents, while the Cotlook A Index has averaged about 97 cents. 
 
Given the substantial cost difference, cotton’s share of the market is expected to continue its decline this season. However, consumption in absolute terms is expected to rise by 1% to 23.6 million tons in 2013/14 and by 3% to 24.3 million tons in 2014/15 as a result of the recovery of the world economy and growth in world population. 
 
Although cotton mill use in China is expected to decline this season to 7.9 million tons from 8.3 million tons in 2012/13, it will still be the largest consumer in 2013/14.
 
Earlier this year, the Chinese government announced that it would end its reserve policy, and test a target price policy in Xinjiang. In 2013/14, the government bought approximately 6.3 million tons of cotton, 42% of which came from Xinjiang, and sold about 930,000 tons. 
 
However, sales are expected to increase as Beijing Cotlook reports that the Chinese government will lower the starting auction price from 18,000 Yuan per ton to 17250 yuan and will allow spinners to purchase one bale of import reserve for every 3 bales purchased from Xinjiang warehouses. 
 
The Secretariat does not anticipate that reserve sales in 2013/14 will exceed 3.7 million tons, which is the volume of sales made in 2012/13. The Secretariat estimates that the Chinese government currently holds 12.8 million tons in the reserve. Total ending stocks for China (including private sector holdings) are expected to be 11.5 million in 2013/14, which account for 58% of world ending stocks.
 

International Cotton Advisory Committee


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search