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Foreign cotton mill use concentration continues

13
Dec '08
The latest U.S. Department of Agriculture (USDA) cotton forecasts for 2008/09 indicate that global cotton mill use is projected to decrease 5.5 percent from 2007/08, marginally higher than the decline experienced in 1974/75 and the largest year-to-year decline since 1943/44.

The current global economic slowdown has impacted textile mill activity in most of the consuming countries, with only a few exceptions.

Although significant reductions in projected cotton mill use have been made this season, mill use is becoming even more concentrated among a few countries. The share of global cotton mill use continues to climb for countries such as China, India, and Pakistan.

In 2000/01, these three countries accounted for less than half of the world's cotton mill use, but are currently projected to account for more than two-thirds. China leads the way, spinning nearly 43 percent of the total cotton spun. Shares for India and Pakistan have grown more slowly to 15 and 10 percent, respectively. Meanwhile, the United States continues its decade-long trend lower.

U.S. Department of Agriculture


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