Home / Knowledge / News / Textiles / Polyester price drop cuts into cotton's share
Polyester price drop cuts into cotton's share
05
Feb '16
The ongoing drop in polyester prices has cut into cotton's market share, particularly in China where polyester has been favoured over cotton in recent seasons.

“When cotton prices dropped at the start of 2014/15, the gap between the Cotlook A index, and polyester prices in China narrowed significantly and greatly improved the competitiveness of cotton,” an ICAC press release said.

“However, this only lasted for a few months as polyester prices continued to drop while cotton prices stabilised,” the cotton trade body observed.

According to ICAC, in 2015/16, that gap has continued to widen, with polyester prices falling from 52 cents per pound in August 2015 to 43 cents per pound in January 2016.

During the same period, the Cotlook A Index has averaged 70 cents per pound, ranging from a high of 74 cents per pound to a low of 66 cents per pound.

In the press release, ICAC also added that cotton consumption in China is forecast down 5 per cent to 7.1 million tons in 2015/16, though it still remains the world's largest consumer of cotton.

While, world cotton consumption in 2015/16 is projected down 1 per cent to 24.1 million tons, with India's consumption expected to be up 2 per cent to 5.5 million tons, while Pakistan's will dip 12 per cent to 2.2 million tons.

Consumption in Turkey will likely remain stable at 1.5 million tons, while consumption in Vietnam and Bangladesh are expected to grow by 22 per cent to 1.1 million tons and 13 per cent to 1.1 million tons, respectively.

“Given the fall in consumption and lower domestic cotton prices, China's imports are expected to fall by 40 per cent to 1.08 million tons,” ICAC noted.

“However, if the pace of its imports remains steady, then Vietnam may overtake China as the largest importer of cotton in 2015/16,” the body again observed.

Cotton imports by Vietnam for the first four months of 2015/16 totaled 327,000 tons, while those by China totaled 247,000 tons.

2015/16 cotton imports by Vietnam are projected to be up 17 per cent to 1.1 million tons and imports by Bangladesh are forecast to increase by 12 per cent to 1.08 million tons.

Consumption in both Vietnam and Bangladesh is increasing steadily, due to lower production costs, but both produce very little cotton, and instead rely on imports to meet demand.

ICAC estimates that world ending stocks will decrease by 7 per cent to 20.5 million tons, which represents about 81 per cent of world cotton consumption in 2015/16.


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X