Cotton demand may slip as textile restrictions askew exports
16 Sep '05
2 min read
Traders said there was some US cotton left in bonded warehouses at Chinese ports as US suppliers cashed on end-July rush due to benevolent US government help for cargoes leaving that country prior to the cutoff date.
Chinese cotton imports surmounted 294,416 tonnes in July from 206,024 tonnes in June, and 160,891 tonnes in May, as US suppliers accelerated their shipment, reveals Chinese customs data.
Now with the weather favoring a bountiful crop in the coming two weeks, cotton output will definitely be impacted in a big way.
Chinese cotton traders and importers have been getting signals from mills and fabric makers of inventory stockpiles due to exports choke up in the US and the Europe.
Normally, textile mills are said to carry inventory lasting a month, but currently, they claim to carry over two months' stock.
Thus, it is clear that if exports go slow, then cotton consumption will slow down automatically.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
