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No shortage of cotton expected in this season
24
May '11
Data reveals that China's business inventories of cotton were 2.56 million tons (including foreign cotton and cotton in circulation) in April, stocks of state reserve were 0.3 million tons, and total inventories reached 2.86 million tons.

According to expectation of several major international organizations, China's cotton imports would be 2.7–2.8 million tons this year.

The imports stood at about two million tons as of April and the state is expected to import about 0.7 million tons more in late time this year. As of April, China's cotton consumption accumulated to 6.8 million tons.

US Department of Agriculture predicts in its report that cotton consumption in China will be 10.233 million tons this year; therefore, China will further consume 3.433 million tons in late time this year.

In this case, cotton supply just meets the demand for late time this year without carryover stock.

Taking into account the situation in India, where cotton price is declining by nearly 30 percent, and Indian cotton farmers want to increase export quota, all these factors will selectively increase China's cotton imports, therefore, it is likely to further ease, China's situation of tight cotton supply.

Fibre2fashion News Desk - China


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