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Experts warn of raw cotton prices scaling new highs
May '10
China produced 23 million tons of yarn in 2009. Assuming that 50 percent of this production is cotton yarn, it would mean the textile industry consumed 11.50 million tons of raw cotton in 2009.

This year traders are speculating over cotton and yarn at the same time, which is different from previous years. They are pulling up cotton price higher through pushing yarn prices, by first stocking up on yarns.

In recent years, imports of cotton yarn have increased rapidly. The country imported more than 900,000 tons in 2009 and is expected to import 1.3 million tons yarn in 2010.

A large number of experts are of the opinion that, cotton price will soar to 20,000 Yuan per ton this year. However, the cotton market has witnessed a correction in recent times, a few experts opine that, cotton price will gradually return to around 15,000 Yuan range.

Fibre2fashion News Desk - China

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