Imported cotton cheaper than domestic produce
July 21, 2009 - China
China’s released amount of state cotton reserves reached 777,000 tons in total as of June 30, while actual turnover registered 496,000 tons and the turnover rate was 63.8 per cent, while the average trade price marked 12,948 Yuan per ton.
By the end of June, average landed mill price for standard cotton level in inland region was 12,849 Yuan per ton, up 49 Yuan per ton from the beginning of the month, or an increase of 0.4 percent.
Settlement price of July cotton futures contract at Zhengzhou was at 13,125 Yuan per ton, 445 Yuan per ton higher than early June, or an increase of 3.5 percent.
In June, CIF price at Asia's major ports was 61.87 cents per pound, down 0.62 cents or 1.0 percent from the previous month and when converted in to RMB its stands at 11,037 Yuan per ton based on calculation of 1 percent tariff.
This is 1,784 Yuan lower than domestic market price. According to customs statistics, China’s cotton imports were 169,000 tons in June, down 20.1 percent year-on-year, but up 10.9 percent from the previous month.
From January to June, China imported 735,000 tons of cotton in total, a reduction of 507,000 tons, or 40.8 percent from the same period last year.