China : Cotton import-export gap to remain large in 2007

According to Xu Wen Ying, general director of Cotton Textile Industry Association, China’s yarn output in 2006 was about 17.4 million tons, the growth rate was about 20 percent, and so domestic demand for cotton was huge. China produced 6.7 million tons cotton in 2006, imported 3.64 million tons cotton.

Based on the analysis of imported cotton price on January 20 this year, international price was 59.13 cent per pound, more than 200 yuan higher than domestic cotton.

After China has implemented a 6 percent slide-tariff this year, China’s cotton price has been 1,279 yuan higher than international market price. This will affect the export of textile enterprises in 2007.

Supply and demand gap in cotton market this year is expected to be large, and 30 percent of domestic requirement will be fulfilled by imports.
 
 
Fibre2fashion, News Desk - China