The most active cotton futures contract at ICE settled at 91.52 cents / lb on February 13, down 36.5 percent year on year.
International Cotton Index (M) was 102.9 cents / lb, down 42.3 percent year on year and is equivalent to 16,698 Yuan / ton based on 1 percent tariff, which is 2,850 Yuan / ton lower than the prevailing price in domestic market.
The spread between Chinese domestic and imported cotton enlarged to 442 Yuan / ton from the previous month.
Meanwhile the price was equivalent to 17107 Yuan / ton when being calculated on sliding tariff basis (cotton imports outside tariff quota).
The price is 2,441 Yuan / ton lower than the prevailing price in domestic market and the spread between domestic and imported cotton has expanded to 440 Yuan / ton.
The average price of China's cotton imports has been declining since late January.
This is mainly due to drop in cotton demand, on expectations of rise in US cotton output, rollover of index funds.
All these have resulted in enlargement of spread between domestic and imported cotton.
Fibre2fashion News Desk - China