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Cotton inventories with textile enterprises dip in May

17
Jun '09
In the month of May, domestic cotton prices stabilized after a rise in mid-April. Since the beginning of cotton auction on May 22, overall spot market, although faced with pressure, remained stable.

A survey done among cotton consuming companies shows that total cotton inventories stood at 900,000 tons, which excludes state cotton reserves, as at the end of May 2009. This compares unfavorably with 1.36 million tons at the end of April.

Up to the end of May, 40 percent of surveyed enterprises still had good level of stocks. As textile enterprises wait for announcement of more favourable policies from the government, they still intend to exist on hand to mouth basis.

Fibre2fashion News Desk - China


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