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Imports of cotton witness double-digit decline

24
Nov '08
China National Development and Reform Commission announced that in October, cotton purchase and sale prices continued to decline and at the same time international cotton price also slumped. Imports of cotton also witnessed a decline as textile production and export growth continued to slow down.

Since textile exports were poor and cotton import cost based on floating import tariff was higher, October cotton imports dropped by more than a quarter showing a decline of nearly 30 percent year-on-year. In the first ten months of this year, China imported a total amount of 1.866 million tons cotton, a decrease of almost 170,000 tons from the same time last year.

Growth rates in yarn output and textile and garment exports over the same period also slowed down. Of which, yarn production growth rate declined by 9 percent year-on-year while on the other hand growth rate of exports of textile and garment dropped by 11.5 percent year-on-year.

In October, prices of cotton yarn and polyester staple fiber in China's domestic market continued to fall. The commission said that in October, acquisition price of grade 3 seed cotton declined by an average of 6.1 percent from the previous month. This drop was as high as 5.5 percent in Xinjiang. Average landed mill prices of standard lint and average cotton futures prices dropped more than Yuan 680 from the previous month.

Fibre2fashion News Desk - China


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