The status quo of China’s Cotton Industry of Mar. 2006
Source: China Cotton Association Date: 2006-04-11
In year 2005, the total production of China cotton was 5.7 million tons, dropping by 9.8%; The industry has purchased 5.25 million tons of lint, accounting for 92% of the tota, with the same level of the previous year; the government has approved 2.394 million tons of cotton quota. By Feb. 2006, the accumulated gross of import cotton was 1.71 million tons. In 2005, the total demand for cotton was 9.85 million tons in terms of 10% of the spinning growth rate. Total production plus stock and import can basically catch up the textile demand. China Cotton Association said, the government would maintain the stable development of cotton industry through the tolls of macro regulation.
In 2006, China’s cotton sown area will increase in a slight way to past year, with the rate of 5-6%, to 80 million mu ( nearly 5.4 million hectare), according to the latest survey on the growing intention by Cotton Growers Cooperation Branch of China Cotton Association and the forecast by other organizations involved.
Since Mar., driven by the drops of international market prices and others elements, the sales price of domestic cotton returned back a little but remaining stable as a whole. On Mar. 1, the CCIndex hit at 14,380 yuan/ton to the climax since Mar., while the bottom was 14,117 yuan/ton on Mar. 31, decreased 263 yuan/ton. The average price of Mar. was 14,240 yuan/ton, a drop of 1.2% from Feb., or 170 yuan/ton, but compared to the same period of last year, it increased by 18.4%, or 2210 yuan/ton.
Translated by Gracie Guo
