Home / Knowledge / News / Textiles / Gap between imported & domestic cotton price grows

Gap between imported & domestic cotton price grows

Oct '08
In September, due to the difficulties faced by the textile industry, domestic cotton price continued to fall.

Landed mill price for domestic standard class averaged at 13,130 Yuan/ton in September, down 592 Yuan or 4.3 percent from the previous month. October contracts at the National Cotton Exchange averaged at 12,949 Yuan/ton, down 568 Yuan or 4.2 percent from the previous month.

While in Zhengzhou cotton futures market, November contract averaged at 13,019 Yuan/ton, down 550 Yuan or 4.1 percent from the previous month.

September was impacted by the U.S. financial crisis due to which market confidence suffered a serious setback. Funds fled from futures markets and international commodity futures prices also fell across the board.

In New York, October contract of cotton futures averaged at 60.92 cents/lb, down 6.23 cents / lb or 9.3 percent from the previous month. In major Asian ports, CIF price at main ports was 77.10 cents/lb, down 1.44 cents/lb or 1.8 percent from the previous month.

If based on calculation of 1 percent tariff, the import price gets converted into 13,645 Yuan/ton, 515 Yuan higher than domestic market price, the price spread enlarged by 298 Yuan/ton compared to last month.

If based on floating tariff, the landing price gets translated to 14,069 Yuan/ton, 939 Yuan higher than domestic market price, with the gap in prices compared to last month rising by 438 Yuan/ton.

For cotton imports, China implements tariff quota system, that is, to cotton imports with quota restrictive volume are applied to one percent tariff rate, cotton imports outside quota restrictive volume are applied to a floating tariff rate.

According to 2008 tariff adjustment issued by the Tariff Policy Commission of the State Council, 2008, floating tariff for cotton imports outside quota restrictive volume is 5 - 40 percent,

Any cotton imports, on which tariff imposed is less than 5 percent, will be levied a additional specific duty of 0.57 Yuan/kg.

Fibre2fashion News Desk - China

Interviews View All

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Top executives, Textile industry

Top executives
Textile industry

GST has levelled the playing field to an extent

Office bearers, Textile industry

Office bearers
Textile industry

There might be negative impact on garment exports

Deepak Mundra,

Deepak Mundra

Surat-based Madhusudan Group is a vertically integrated textile...

Jash Choraria,

Jash Choraria

Established in 2015 by <b>Jash Choraria</b>, Unifynd is a Mumbai-based...

Karen Lou,

Karen Lou

Australia-based Sunseeker has been creating swimwear since 1970. Sunseeker ...

Ian Russell, Pireta

Ian Russell

UK-based Pireta has developed a unique free-form process to add durable,...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Dave Rousse, INDA

Dave Rousse

INDA, a global association of the nonwoven fabrics industry, has been...

Aneeth Arora, Péro

Aneeth Arora

The Woolmark Company has partnered with handmade fashion label Péro and...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Igor Chapurin, Chapurin

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Follow us on instagram


Follow Fibre2Fashion On

Advanced Search