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Chinese spot cotton remains stable on June 8
Jun '11
Domestic spot cotton market remained stable on June 8, trade between buyers and sellers was rather boring, demand was not large, and sales were less active, resulting in lower market turnover.

China Cotton Index (CC Index) stood at 24,575 Yuan / ton, up 16 Yuan on the day, grade 2 was quoted at 26,603 Yuan / ton, up 3 Yuan, grade 4 was 23,575 Yuan / ton, up 7 Yuan and grade 5 was 22,629 Yuan / ton, up 1 Yuan.

According to market feedback, current trade volume on domestic spot cotton market is still not high, mainly due to hoarding.

Due to the high costs of the hoarded inventory, enterprises are reluctant to sell at low price; therefore, at present, actual price is far from ideal, which makes enterprises less enthusiastic to sell stock.

Textile enterprises will face some pressures if stocks fall and if supply from cotton enterprises continues to be inactive. Cotton trade volume is expected to enhance, as textile enterprises will have to replenish stocks.

Fibre2fashion News Desk - China

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