Unginned cotton prices in China rising steadily since new cotton came onto market in September, but prices likely to see limited rise room given depression of textile industry and pressure from cheaper imported cotton
November 5, 2013
(Xinhua News Agency)
– Unginned cotton prices in China have increased persistently since new cotton came onto the market in September, but are likely to see limited rise room given the depression of the textile industry as well as pressure from the cheaper imported cotton.
Currently, purchase prices of unginned cotton in Xinjiang Uygur Autonomous Region, the biggest cotton production base in China, stay at around 9.2 yuan/kg, up nearly 10 percent over the same period of last year.
Mounting planting cost and expectations for output decline are pushing up new cotton prices, analysts say.
However, unginned cotton prices are unlikely to see a big rise in the future. Currently, textile enterprises are still in the difficult situation on tepid sales and high capital pressure. Meanwhile, cheaper imported cotton continues to weigh on the homegrown cotton prices.
Due to high prices of new cotton and warehouse backlogging, many cotton processing mills have begun to reduce their procurement. Decreasing market demand will also help check rapid rise of cotton prices, predict industry insiders. (Edited by Liu Xiaoyun, firstname.lastname@example.org)
(c) 2013 Xinhua News Agency