Home / Knowledge / News / Textiles / Future of cotton industry remains skeptical
Future of cotton industry remains skeptical
14
Nov '08
With global recession and all-round financial crunch the demand from downstream markets has shrunk drastically. This has had a quantum impact on cotton industry of China, as supply is much larger than demand.

This situation has led to dramatic decline in prices. Reports show that domestic cotton price in China plunged over 40 percent in eight months from its highest point in March.

Infact, this year, cotton-planting cost increased and seed cotton cost rose to 6 yuan per kg. However, now seed cotton price slid to 4.6 yuan per kg, which is lower than planting cost line.

Statistics from Zhengzhou Commodity Exchange showed, cotton futures price hit 17,660 yuan per ton in March, but it dropped all the way down to 10,000 yuan per ton in recent times. This clearly marks a plunge of more than 56 percent.

With continued weakening of domestic cotton price, most people in the market are understanding the trend and are skeptical about the future.

Textile enterprises have reduced cotton stocks, in order to avoid price risks, some textile enterprises with relatively strong funds have also lowered their inventories of raw materials. This has led to a sharp fall in average stocks of domestic cotton textile enterprises for October.

Among surveyed enterprises,76 percent reduced their cotton stocks, 18 percent increased their cotton stocks; the average cotton stock level decreased from 32.03 days by the end of September to 27.74 days at the end of October, or from 1,019,000 tons down to 886,000 tons when convented into cotton industry inventories.

Relevant departments said, the state will further increase cotton reserve quantity in a timely manner based on requirement of the market, at the same time, the state will have strict control over cotton imports in 2009. It is reported that the state has so far introduced cotton procurement policy for three times this year.

Fibre2fashion, News Desk - China


Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Marcel Alberts
Eurofibers

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

Ashok Desai
Bombay Textile Research Association

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sonam & Paras Modi
SVA

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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