Yarn Production & Cotton Consumption

By CnAgri2012-09-26 13:39:18 Print

Yarn production by medium and large mills registered 2.782 million MT in August, 1.9% more than the month before and 14% more than the same period of last year. Yarn production totaled 20.879 million MT in January ~ August, an increase of 13.1% on the year-on-year basis. The promulgated figures showed a yarn production increase rate of 15.3% in August and 13.5% in January ~ August, both on the year-on-year basis.

BOABC estimates that medium and large yarn mills consumed about 885,000 MT cotton in August and 6.643 million MT in January ~ August, up 5.59% and 4.83% respectively on the year-on-year basis. Cotton consumption for various uses was estimated to be 913,000 MT in August and 6.706 million MT in January ~ August.

Cotton stock was estimated to be 5.073 million MT at the end of August, representing a stock index of 5.6, higher than the 2.1 recorded in the same period of last year. The stock consisted of about 3.948 million MT state reserve, 447,000 MT textile mills’ stock, 427,600 MT traders’ stock and 250,000 MT on-farm stock.

In the 2012/2013 crop year, despite drop of domestic cotton production, a large carryin and stable consumption may lead to a high year-end inventory and a high safety index.

From “China Cotton Market Bi-Weekly Report”