Home / Knowledge / News / Textiles / China likely to hold nearly 60% of world's cotton stocks
China likely to hold nearly 60% of world's cotton stocks
02
Jul '14
Higher ending stocks outside China and lower imports into China will put downward pressure on international prices in 2014/15. Additionally, world production is likely to exceed consumption in 2014/15, though by a lesser amount than in the past four seasons. As a result, world ending stocks are expected to rise by 6% to 21.4 million tons and the stock-to-use ratio would be 89%, or in other words there would be enough cotton stocks to cover consumption for nearly 11 months. This would be the fifth consecutive season of increase in ending stocks, after a 27% fall in 2009/10. 
 
China is estimated to hold nearly 60% of the world’s stocks, most of which is held in its government reserve. At the end of June, the Secretariat estimates that the Chinese government will still hold 11.7 million tons. While consumption in China is forecast to grow during next season, a strong preference exists for high quality cotton, so it is unlikely that the government will be able to quickly draw down its reserve without offering significant discounts. 
 
At the end of 2013/14, China is forecast to hold 11.5 million tons, an increase of 19% from 2012/13, and these stocks are likely to further expand in 2014/15. Additionally, ending stocks outside China are also expected to rise by 7%, to 8.7 million tons at the end of this season and are projected to reach 9.7 million tons at the end of 2014/15.
 
In 2014/15, world production is forecast to drop by 2% to 25.3 million tons due to reduced planting in China, where cotton production may reach only 6 million tons. Production in the rest of the world is expected to increase by 1% to 19.3 million tons. In 2013/14, production in India is estimated at a record 6.5 million tons due to higher yields and better prices, which encouraged farmers to plant more cotton in 2014/15.
 
Assuming yield is similar to the 3-year average, Indian cotton production is projected to reach 6.3 million tons in 2014/15, but this result is highly dependent on the timing of monsoon rains. The Southwest region of the United States has received much needed rain, which could help reduce the abandonment rate and result in a higher harvested area than last season. In 2014/15, production in the United States is expected to grow by 14% to 3.2 million tons.
 
In 2013/14, world consumption grew by less than 1% to 23.4 million tons, but a rise of 3%, to 24.1 million tons is anticipated in 2014/15. The high price of domestic cotton in China, restrictions on imports, difficulties with financing and weak demand for cotton yarn have caused many mills in China to further reduce operations this past season. 

Must ReadView All

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Information Technology | On 21st Feb 2017

ThreadSol launches IntelloBuy & IntelloCut in Vietnam

ThreadSol, the pioneer of enterprise material management for sewn...

Textiles | On 21st Feb 2017

GST to reduce documentation for logistics firms: CBRE

The Goods and Services Tax (GST) is likely to result in a reduction...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi
SVA

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

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search