Cotton Consumption in April

By CnAgri2013-06-07 11:24:23 Print Yarn production by medium and large mills registered 2.864 million MT in April, 3.7% less than the month before but 8.7% more than the same period of last year. Yarn production totaled 10.809 million MT in January ~ April, an increase of 9.6% on the year-on-year basis.
 
BOABC estimates that 788,000 MT cotton were consumed for yarn production in April. Yarn mills consumed 1.997 million MT other fibers in April and 7.54 million MT in January ~ April, 20.5% and 21.48% more than the same period of last year respectively.
 
Uncombed cotton imports were 431,000 MT in April. 315,000 MT state-reserved cotton was sold by auction in April. Cotton inventory was 9.9 million MT at the end of April, suggesting a stock index of 12.1, above the 9.2 recorded in the same period of last year. The large cotton inventory may lead to a soft cotton price.
 
The cotton inventory in April was estimated to include 9.053 million MT state reserve, 551,000 MT textile mills’ stock, 254,000 MT traders’ stock and 40,000 MT on-farm stock, 91.45%, 5.57%, 2.57% and less than 0.5% of the total respectively.
 
Cotton price averaged RMB19,378/MT in April and RMB18,986/MT between August of 2012 and April of 2013, down 0.02% and 2.18% respectively on the year-on-year basis.
 
Cotton imports are estimated to be 4.3 million MT in 2012/2013. Cotton consumption, year-end inventory and safety index are predicted to be 8.492 million MT and 89.7% respectively. Cotton price is estimated to be RMB19,100/MT in the crop year on average.
 
Cotton acreage is predicted to shrink 5.56% in 2013/2014 to a level of 4.895 million hectares. Cotton production and imports are predicted to be 7.626 million MT and 3 million MT respectively in the crop year. Year-end inventory and safety index are predicted to be 9.222 million MT and 93.0% respectively.  Cotton price is predicted to be RMB19,771/MT.




From “China Cotton Bi-Weekly Market Report”