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Declining cotton stock leads to hike in price

Jun '07
Declining cotton stock in textile mills has led to the current hike in cotton price. In order to maintain the normal operation, textile enterprises have to follow the rising trend while purchasing local cotton, but they are ready to increase the proportion of imported cotton.

In Taian region, lint delivery price rises 100-200 yuan/ton. Currently the price of local growth 329 level is at 13,600 yuan/ton (delivery price, the same below). Price of Xinjiang cotton 129 level is at about 14,300 yuan/ton, prices of roller ginned cotton 130 level and 230 level are at 14,000 yuan/ton and 13,800 yuan/ton, respectively.

From this trend, short-term lint prices are likely to maintain a small upward trend amid steadiness.

It is reported that in Hebei Province delivering to mill price of roller ginned cotton in 3 grade has increased to 13700-13800 yuan/ton. In order to keep normal operation, some enterprises have intended to raise the amount of imported cotton.

Currently delivering to mill price of India's roller ginned cotton s-6 is at 13400-13500 yuan/ton, and it is settled against net weight, India's cotton has more obvious advantage in price.

Industrial sources say local growth price should follow international cotton price. The hike in domestic cotton price has brought up a greater psychological impact than actual effect.

Fibre2fashion News Desk - China

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