Global cotton consumption forecasted to rise 2% - USDA

26 May '14

2 min read

World 2014/15 cotton mill use is forecast at 111.8 million bales, up 2 percent from 2013/14, reflecting an expanding global economy. The two largest consuming countries are China and India, with a combined cotton mill use of over 60 million bales, or 54 percent of the world total.

China is forecast to increase its consumption by 4 percent to 37 million bales in 2014/15, the highest in 3 years. China’s domestic cotton prices have been above world prices during the last several years, which dampened mill use and encouraged the substitution of yarn imports. However, recent policy announcements are likely to make cotton fiber more competitive within China and provide the incentive for increased cotton mill use.

India’s 2014/15 cotton consumption is projected at a record 23.5 million bales, 2 percent above a year earlier, representing 21 percent of global cotton consumption. India’s mill use rose 18 percent between 2011/12 and 2013/14, supported by yarn shipments to China. In 2014/15, however, reduced yarn shipments to China will likely limit India’s consumption growth to near the world average.

Cotton consumption in Pakistan has also grown steadily in recent years, benefitting from yarn exports to China. For 2014/15, cotton mill use is forecast to rise about 3 percent to 11.8 million bales, the highest since the mid-2000s, accounting for 11 percent of world cotton consumption.

Growth is also expected in 2014/15 in a number of other Asian countries, including Bangladesh, Indonesia, and Thailand. In addition, cotton consumption in Turkey is forecast to rise nearly 2 percent (100,000 bales) to 6.4 million bales in 2014/15.

USDA

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