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Domestic cotton price shows a steady upswing this year

May '07
Due to ideal weather conditions, cotton acreage increased, cotton output amounted to 6.73 million tons.

According to the State Statistics Bureau, from last September to February this year, China's yarn output completed 8.98 million tons, representing a growth of 19 percent over last year. Textile exports reached US $76 billion, a growth of 20 percent from last year.

Therefore, following the calculation against the current growth rate, cotton demand this year will be about 11.5 million tons, still bringing the shortfall of about 4 million tons.

Up to now, nationwide cotton sales have exceeded half of the output, private processing enterprises accounted for over 80 percent share. Xinjiang cotton sales improved 10 percent over the same time last year. Around 1.60 millon tons of Xinjiang cotton has been transported to other places outside Xinjiang, an increase of 520,000 tons from last year.

According to statistics, during the first six months this year, cotton imports reduced significantly to only 860,000 tons, a reduction of nearly 50 percent from the same period last year.

On the other hand, international cotton supply and demand has been balanced, cotton supply is abundant. Global cotton stocks amount to 11.91 million tons according to statistics.

International cotton market price has little fluctuations, due to less cotton imports from China. Therefore, the overall trend of domestic cotton price shows a steady upswing.

Fibre2fashion, News Desk - China

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