Beijing. Cotton demand in China, the largest user, may rebound this year, increasing imports and stemming a decline in prices, said an industry official.
Consumption may rise to 9.58 million metric tons this year from an estimated 9 million tons in 2011 amid a recovery in the textile industry, he said.
China, which uses about 40 percent of the world’s cotton, will import 18.5 million bales this season, the most in six years and 54 percent more than a year earlier, according to a U.S. Department of Agriculture estimate on March 9.
“Things are looking to pick up in the industry at the beginning of this year, as far as we can see we are running at full capacity in the first two months and our end-product cotton yarn inventory has been reduced by 12 percent during the period,” official said. “Cotton demand is set to rise this year and the price gap between foreign and local cotton will narrow steadily.”
Imports have gained 64 percent to 942,400 tons in the first two months, according to customs data. Shipments to China are rising as the government diverts domestic supplies to state reserves that may represent 25 percent of global stockpiles by July, according to International Cotton Advisory Committee in Washington.
Source: http://www.moneycontrol.com/commodity/comm_news.php?autono=174118&type=MKT
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