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Cotton stocks to be stable till new arrivals
Aug '10
China Cotton Association conducted a spot check on raw material inventories among cotton enterprises in all provinces. As of the end of June 2010, total business inventories of domestic cotton were 1.9 million tons.

The state released 1 million tons of cotton quotas in July, making total cotton import quotas up to 3.6 million this year. In addition, 600,000 tons of cotton reserves are about to put into the market.

As of early October, total domestic business cotton inventories are expected to be around 1 million tons against a monthly consumption of about 800,000 tons, so cotton stocks are expected to be stable, before new cotton comes into the market.

Moreover, according to the survey data, many cotton textile enterprises hold adequate stocks. Some large-scale textile enterprises hold stocks enough for 6 months consumption, and some medium-sized enterprises hold cotton stocks that can last to end of August.

Fibre2fashion News Desk - China

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