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Cotton prices to face pressure at higher levels
Nov '09
At the just concluded 106th session of National Import and Export Fair, total trade amount of textile and apparel reached US $3.42 billion, an increase of 5.9 percent from the previous session.

Of which, trade value of apparel and clothing accessories registered $1.79 billion, an increase of 10.5 percent from the previous session and trade turnover of textiles fetched $1.63 billion, an increase of 1.4 percent from the previous session.

Textile and garment exports have shown a trend of faster recovery, sending signals of bullish outlook to cotton market. But analysts are more cautious and believe that the market might exceed 15,500 Yuan per ton in the short term, but will face pressure at 16,000 Yuan.

Although short-term market is expected to remain strong, sharp rise in cotton price is likely to cause heavy profit-selling and will also force the state to promulgate new regulation policy in order to reduce high cost pressures on textile sector.

Fibre2fashion News Desk - China

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