Home / Knowledge / News / Textiles / Cotton prices drop amidst inflation
Cotton prices drop amidst inflation
30
Aug '08
It has been noted that in about past six months the demand for cotton in China has dropped continuously, especially due to the sluggish state of textile industry.

Thus, cotton inventories are already huge and traders have been extremely concerned, particularly since the arrival of new cotton.

Considering the above factors, cotton prices have started dipping. While cotton was quoted around 17,600 yuan per ton in March 2008, it is now priced at just 13,600 yuan per ton.

Experts say that when prices of most raw-materials and others items are rising due to international inflation, internal factors like RMB appreciation and almost nil demand are pulling down cotton rates.

One of the factors affecting the prices is that Government announced a subsidy of 400 yuan per ton for Sinkiang-cotton that is transported to other provinces, so as to clear out the inventories.

Another reason for the dramatic fall in prices is that it is time for cotton enterprises to pay back the loan of Agricultural Bank of China. Thus, companies are reducing their prices so as to liquidate their stocks.

American Agriculture Department has estimated that in the second half of this year, the output of Chinese cotton will remain similar to the current 7.729 million tons. However, the cotton consumption will go down by 220,000 tons from present 11.75 million tons.

Fibre2fashion News Desk - China


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Warangal textile park gets environment clearance

The Kakatiya Mega Textile Park, coming up in Warangal district of...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Marten Alkhagen
Swerea IVF AB

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

July 2017

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

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

Yes No

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

Yes No

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


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



X