China's cotton imports may increase up to 4 million tonnes this year as state stockpiles domestic cotton, trade group says; country's cotton imports forecast to grow 54% year-over-year to 18.5 million 480-lb. bales, USDA says
March 13, 2012
– On March 10, China Cotton Textile Association Deputy President Sun Yingan said that China’s cotton imports could potentially increase by up to 4 million tonnes as the Chinese state stockpiles domestic cotton, Bloomberg reported March 10.
In March, the U.S. Department of Agriculture estimated that China’s cotton imports this year could potentially increase 54% to 18.5 million 480-pound bales (4 million tonnes).
Commodities broker Yongan Future Co. Broker Co., Ltd. said that, following India’s ban on cotton exports, China may seek to import cotton from either Australia or the U.S.
Sun said that, year-over-year, China’s cotton consumption may decrease by 500,000 tonnes. Last year, consumption was roughly 9 million tonnes.
The government is likely to buy 3 million tonnes of the 2011 harvest, which could have totaled more than 7 million tonnes, according to Sun.
According to a statement posted on the China Cotton Reserves Corp’s website, by March 9, the Chinese government had purchased in excess of 2.8 million tonnes.
Data from Chinese customs indicated that, year-over-year, China cotton imports fell 16% to 326,400 tonnes in January.
On Feb. 16, researcher Cotlook Ltd. predicted that China’s cotton output will most likely decrease 10% to 6.4 million tonnes, while consumption will most likely increase 3.4%. In 2012-2013, global cotton production will outstrip demand by 1.9 million tonnes.
The primary source of this article is Bloomberg, New York, New York, on March 10, 2012.