China : Cotton price in Anhui drops as production grows

Anhui's cotton yield this year registers the highest in history. Although cotton production is higher, cotton price has fallen from 5.8 yuan per kg when it just arrived in the market to the current level of 4.8-5.0 yuan per kg.

Many cotton traders consider the price fall has been caused mainly by two factors: First, imported cotton impacts domestic growth; Second, cotton growers have planted mixed varieties and due to excessive ‘three exotic fibers’, textile enterprises prefer purchasing Xinjiang cotton or imported cotton.

It is learned that in late September to October, when large quantity of cotton arrived in market, Anhui cotton price fell back rationally, seed cotton grade 3 declined to 5.2 yuan per kg, basically same to the level of other provinces, but slightly below 5.5 yuan per kg of the procuring price last year.

This year, Anhui's total cotton production and quality are better than last year; the overall grade average is higher over the previous year. Anhui cotton area expanded over 2005 to 5.90 million mu (one hectare = 15 mu), and total cotton production is of 7.20 million dan (one dan = 50 kg).

Some industry insiders believe that although part of unginned cotton has fallen to 4.8 yuan per kg in the lowest, this price should be short living, the current price level of 5.0-5.2 yuan per kg is a more reasonable.

 
 
Fibre2fashion, News Desk - China