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Current price of cotton still high – Textile mills

07
Sep '09
In the 2008 cotton year (Sept 08-Aug 09), China's cotton production is estimated at 7.50 million tons, cotton imports are expected to be 1.5 million tons and state cotton reserves of the previous years total to 2.72 million tons.

The state released 1.52 million tons of cotton under auctions in the last few months and it also had originally the amount of annual cotton consumption in the country to be about 7.8 million tons.

However, a supply-demand gap in cotton appeared in August, due to which the China National Cotton Reserves Corporation released cotton reserves twice at a basic auction price of 12,600 Yuan per ton.

However, many cotton textile mills continue to believe that the current market price at 13,000 Yuan per ton is higher and are hoping for the price to drop to 12,000 Yuan per ton, when new cotton arrives in the market, which they consider to be a reasonable price.

Fibre2fashion News Desk - India


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