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Denim consumption affects overall cotton markets

23 Mar '06
1 min read

Downtrend in Mexico's cotton denim sector resulted in a sharp drop in the country's overall cotton consumption.

Cotton denim sector is most important industry in the country with Mexico being the top denim supplier to the US.

However, it is increasingly losing markets to India, Bangladesh and other such Asian countries.

Denim fabric production was firm during the first quarter of 2005, but, it declined significantly in the second quarter and is continuing its slide.

As measured on BIE Index of Cotton Denim Fabric Production (1993=100), denim output decreased 13.1 and 18.1 percent for the months of October and November 2005, respectively.

After the decline of 11.4 percent, the Index reached 94.2 in December.

In 2005, the average monthly production index was 162.9, representing a 5.9 percent year-on-year fall.

Mexico's total cotton denim fabric production in 2005 is estimated at 341,88 tons, the lowest since 2002 when output totaled 312,60 tons.

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