Textile sector will bottom out very soon – Ms Lilin, CCA
Source: Fibre2fashion News Desk Date: 2009-05-13
| The just completed cotton season played havoc and spared neither the farmer nor the trader in the initial months of the new cotton crop arrivals in the market. Despite the fact that prices ruled at four year lows, there was minimal demand from the textile mills for want of liquidity. China fared no better, but was saved by the market intervention of the government which procured huge amounts of cotton from the farmers and ginners. With the objective of a getting a clear picture in the current market situation, Fibre2fashion spoke to Ms LiLin, Director (Public Relations), China Cotton Association, who said, “China is the largest cotton producer, consumer and importer in the world. In 2008, China's cotton output reached 7,490,000 tons and imports registered 2.11 million tons; yarn production completed 21.49 million tons, giving it the number-1 rank in the world”. She added by saying, “China’s cotton imports from India marked 610,000 tons, accounting for a 29 percent share of China’s total imports due to which India is the second largest exporter of cotton to China, but impacted by the financial crisis, demand from international market is in the doldrums, textile and clothing products are overstocked and exports are disrupted, creating a direct impact on cotton demand”. She continued by saying, “In October last year, China’s domestic cotton price fell by a larger margin when new cotton arrived in the market and the Chinese government introduced provisional procuring measures in time and purchased 2.7 million tons of cotton for state reserves in total, which effectively protected the interests of farmers and stabilized cotton prices in domestic market”. The present difficulties are temporary, in the long run, China's textiles and clothing are still relatively competitive in international market, and China has great potential lying in domestic demand. At present China's economy has shown signs of warming-up. Meanwhile, China has implemented a series of plans to revitalize the textile industry, it is believed that China's textile industry will bottom out very soon”, she concluded by saying. We next asked her, if she visualizes the market bending towards the man-made fibre industry, to which she replied by saying, “No matter, whether at home or abroad, cotton products have occupied a stable market share both in China and other countries in the world and with the improvement of living standards, as well as enhanced awareness of returning to nature and environmental protection, people will always have a attachment for cotton made products”. We concluded the interview by asking her about the consumer demand for organic cotton to which she replied by saying, “As regards organic cotton, we have not conducted any special study or research related to organic cotton, since, China has very small production and even less consumption”. | |
|
|
