Import volume of cotton dropped 3 months

Affected by the low supply-demand of the textile industry, by the end of June, as world No.1 cotton import country, China has reduced the import volume of cotton for 3 months.

The figure from the customs showed that, China imported 120,000 tons of cotton in June 2011, 2,500 tons less than the figure of May, accounted for 17 percent decline and 29% Y/Y decline. The import volume for the first half of 2011 was 1,327,000 tons, dropped 14.1 percent from a year ago.

According to reports, China’s cotton yarn and woven cloth production accounted for 65 percent and 80 percent respectively of the world portion. The tendency of the cotton price in China has a very obvious directive function for the rest of the world.

Analysts believed, affected by floor purchase price 19800 yuan/ton set by the National Development and Reform Committee, it is very likely the price of cotton will remain above 2000 yuan/ton for long time in the future.