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Despite slowdown, yarn output posts growth
Jan '10
China's cotton consumption maintained growth momentum in 2009 and despite the economic crisis leading to a slowdown in the previous year, spinning production too kept pace and registered increase in production.

Cotton yarn output achieved 21.665 million tons from January to November, up 10.4 percent year on year. Cotton imports registered 1.31 million tons, up by 32.6 percent year on year; textile and apparel exports realized US $150.59 billion, down by 11 percent.

Stabilizing production and protecting consumer consumption have become a top priority of China's cotton production. While new cotton price rebounded sharply in 2009, both production and sales were strong.

Farmers aver that the average price of seed cotton was less than 5.5 Yuan / kg in the last two years, and less than 5.7 Yuan / kg in last three years. It has not been able to touch highest level of 6 Yuan / kg, even though cotton prices in the market reached 15,000 Yuan / ton.

Industry people say that cotton planting area may maintain stability if seed cotton price stands at 7.0 Yuan / kg; cotton area will be slightly reduced if seed cotton price touches 6.6 Yuan / kg and will fall significantly if seed cotton price is 6.0 Yuan / kg.

Fibre2fashion News Desk - India

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