Export sales amount to around 1.1mn bales

13 Apr '07

3 min read

Another positive development was the news that China was releasing another import quota of 1.5 mio tons (6.6 mio bales,) which should ensure relatively steady import demand from the world's largest consumer over the coming weeks and months, most of which will have to come from the US.

If Chinese yarn production numbers are any guidance, mill consumption in China continues at a strong rate. Yarn output for March amounted to 1.592 mio tons, up an impressive 37.3 percent from last month and 20.7 percent higher than a year ago.

Therefore, yarn production is currently running at an annual pace of over 18 million tons and depending on what cotton/polyester ratio one uses, mill demand for cotton calculates between 9.9 mio and 11.5 mio tons.

The lowest estimates have the cotton/polyester ratio at just 55%, while the more optimistic ones are near 64%. Reliable sources tell us that the ratio is likely to be around 59%, which would put mill consumption at 10.6 mio tons. In addition to that number there is about 5% of cotton consumption outside the spinning system, which would put total domestic demand at roughly 11.2 mio tons.

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