Global snapshot: cotton market overview

By Joe Ayling | 24 September 2010

With global cotton prices reaching a decade-high, spinning mills are stocking up on bales to meet a return in demand for cotton-based apparel products.

However, issues related to late Chinese harvests, Indian export limits and flooding in Pakistan have slowed up supplies of the fibre. Here is a snapshot of key destinations for global cotton production and its use in the textile industry.

Market leaders

China is the world's leading producer and consumer of cotton, with production standing at 35.5m bales in 2008-2009, while consumption was 53.5m, according to the UN Conference on Trade & Development.
India is the second largest global producer, growing 24m bales and using 18m during the last growing season (UN).
The US and Pakistan represent the third and fourth largest cotton growing markets repectively (UN).
While the US grows around 13.7m bales of cotton per year, the country exports 13m of them (International Coffee Organisation).
India trails the US for exports, shipping around 8m bales of cotton per season (International Coffee Organization).
China is by far and away the world's largest cotton importer, serving its vast textile manufacturing base, and imported 13m bales in 2008-2009. Its closest rival was Turkey, which imported 3.3m.

Outlook

Cotton mill use should continue to recover next year, but more slowly than in 2009/10 due to limited available supplies and high prices, according to the International Cotton Advisary Committee (ICAC).
India is expected to account for most of the increase in global cotton mill use in 2010/11 (ICAC).
World cotton imports are expected to continue to recover in 2010/11, growing by 8% to 8.4m tons, ICAC predicts, with US exports projected to rise by 33% to a five-year high of 3.5m tons in 2010/11.
World cotton production is expected to rebound by 16% to 25m tons in 2010/11 (ICAC).
The US is driving the rebound in global production in 2010/11, with an expected crop of 4.1m tonnes, 55% larger than last season (ICAC).

Sectors: Fibres & fabrics, Sourcing