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Hike in cotton prices threatens textile manufacturers
10 Nov '10
1 min read
Cotton supply scarcity resulting in record price hike of the item has been threatening Chinese textile manufacturers who utilize above 40 percent of the world's cotton. Such a scarcity has sharply increased cotton and yarn prices, alarming the survival of the textile companies.
Since the commencement of trade, around 140 years ago, cotton futures traded in New York touched the highest price and in Zhengzhou it soared up to a record high. The cotton prices have soared up tremendously owing to the persisting concerns regarding production deficit in China that could be higher than the estimates.
As per the forecasts of US Department of Agriculture, the fibre production in China in the current year that started on August 1 could not fulfill the domestic consumption for a 12th straight year, reducing the country's inventories to a 16-year low. It had also estimated that this year China is expected to import 13 million bales of cotton against last year's import of 10.9 million, due to the reduction in global stockpiles.
Since the commencement of trade, around 140 years ago, cotton futures traded in New York touched the highest price and in Zhengzhou it soared up to a record high. The cotton prices have soared up tremendously owing to the persisting concerns regarding production deficit in China that could be higher than the estimates.
As per the forecasts of US Department of Agriculture, the fibre production in China in the current year that started on August 1 could not fulfill the domestic consumption for a 12th straight year, reducing the country's inventories to a 16-year low. It had also estimated that this year China is expected to import 13 million bales of cotton against last year's import of 10.9 million, due to the reduction in global stockpiles.
Fibre2fashion News Desk-India
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