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High cotton stocks – a cause of concern
Oct '08
According to available statistics, Shandong, Hebei, Xuzhou and Jiangsu provinces have higher cotton stocks in warehouses.

In the 50,000 tons-storage warehouses of China National Cotton Reserves Corporation (CNCRC), there is already no room for new cotton. It seems that 20,000 tons of cotton is temporarily stored in a logistics warehouse in Xuzhou.

A commercial warehouse in Xuzhou can store 50,000 tons cotton. Thus, many ginners in Xinjiang are rushing to make shipments as soon as possible. Reportedly, Xinjiang alone has 450,000 tons of cotton.

Due to international trade turmoil, industry could not accomplish major export in 2007/08, which also added to the backlog of inventories. According to investigation, China's cotton stocks are more than 690,000 tons, almost within the range of 700,000-800,000 tons.

Experts say that large cotton stocks will have inevitable and direct impact on new cotton price trend.

Fibre2fashion News Desk - China

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