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Cotton procurement & import witness downturn

17
Dec '08
Last week, starting from December 8 to 12, China provided around 144,400 tons of cotton for reserve procurement plan, a reduction of 115,100 tons or 44.3 percent from the previous week.

Nearly 139,600 tons were traded. From sub-region statistics, 65,600 tons of cotton exchanged hands in Xinjiang, representing a reduction of 142,200 tons or 68.4 percent from the previous week; 74,000 tons were traded in inland, an increase of 35,300 tons or 91.2 percent from the previous week. The weekly procurement took place in 50 warehouse points, among them 12 in Xinjiang, and 38 in inland.

As of the weekly report, the second batch of reserve procurement plan has completed 824,650 tons, accounting for around 82.4 percent of the total procurement plan of 1 million tons. The accumulative procurement has reached 1,044,650 tons in 2008, accounting for 85 percent of the total reserve procurement plan of 1.22 million tons.

On the other hand, the country is importing cotton to meet its regular demand of the textile industry. According to customs statistics, China imported 76,000 tons of cotton in November 2008, further down by 21 percent over October, and 25 percent against similar period last year; the lowest in single month in nearly last four years.

November import value of cotton was US $125 million with average import price at $1.64 per kg, also the lowest since April of this year.

In the period from Januray to November, China's cotton imports totaled to 1,943,000 tons, down 9 percent from the same time last year.

Fibre2fashion News Desk - China


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