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Revoke cotton sliding duty, Chinese textile sector demands
24 Apr '12
2 min read
Stakeholders in the Chinese textile industrial value-chain have demanded cancellation of sliding duties on cotton imports.
According to them, sliding duty is imposed at the rate of 6.3 percent on imported cotton which increases the cost of imported cotton.
This has undoubtedly created significant cost pressures on the textile industry.
Chinese cotton textile enterprises have received inadequate orders this year, due to the impact of global economic downturn.
Some EU and US orders have been gradually transferred to other countries, due to mainly rising costs in China.
Due to which, export performance of China's textile enterprises is not optimistic this year. In the light of the above, they have demanded revoking sliding duties.
Chinese domestic cotton price has stood between 19,000-19,800 Yuan / ton in the last three months. March delivery price at New York futures was 91.63 cents / pound, which is equivalent to China's price at 15,341 Yuan / ton under sliding duty.
This is 3,832 Yuan / ton lower than price prevailing in domestic cotton market. The average price of Indian cotton in China was about 12,000 Yuan / ton in China's market.
The spread between domestic and international cotton prices is in the range of 4000-7000 Yuan / ton.
According to them, sliding duty is imposed at the rate of 6.3 percent on imported cotton which increases the cost of imported cotton.
This has undoubtedly created significant cost pressures on the textile industry.
Chinese cotton textile enterprises have received inadequate orders this year, due to the impact of global economic downturn.
Some EU and US orders have been gradually transferred to other countries, due to mainly rising costs in China.
Due to which, export performance of China's textile enterprises is not optimistic this year. In the light of the above, they have demanded revoking sliding duties.
Chinese domestic cotton price has stood between 19,000-19,800 Yuan / ton in the last three months. March delivery price at New York futures was 91.63 cents / pound, which is equivalent to China's price at 15,341 Yuan / ton under sliding duty.
This is 3,832 Yuan / ton lower than price prevailing in domestic cotton market. The average price of Indian cotton in China was about 12,000 Yuan / ton in China's market.
The spread between domestic and international cotton prices is in the range of 4000-7000 Yuan / ton.
Fibre2fashion News Desk - China
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