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China cotton report - May 2007

25
May '07
Since April, the spring cotton sowing has been started in an all-round way. Most of cotton region meet a high temperature, cotton emerged earlier than the same period last year.

According to the last statistics of China Cotton Association (CCA), the sown area this year will be 81 million mu, equal to last year.

In 2006/07 season, the output of China cotton is 6.73 million tons and 96% has already been purchased by the end of April. In April, Yarn output keep increasing, fabrics and clothes export go up by a wide margin, cotton import decrease from last month. The price of domestic cotton fall slightly, import quota under the sliding scale duty has been issued successively.

The Supply:
1) 96% of new cotton has been procured. According to the statistics of China Cotton Association, 6.454 million tons (96% of the total output) ginned cotton have been procured by the end of April in whole nation, increase by 22.9% compared with the same period of last year. Among them, Xinjiang purchases 2.182 million tons, accounts for 33.8% of the whole nation.

2) The price of the domestic cotton drops slightly. Some textile enterprises reflect that the storage of raw materials is comparatively sufficient at present and the finished-products overstock severely, the fund deficiency problem is still outstanding relatively.

The price of the domestic cotton drops slightly continuously in April. It is comparatively steady at beginning of month and the end of the month, decrease relatively big in middle of the month.


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