Chinese cotton imports near record high in March

CHINA: Cotton imports near record high in March

By Leonie Barrie | 8 May 2012

Imports of cotton into China have nearly doubled during the season which has just ended - with imports in March ranking as the second highest in record, according to official figures.

The China Cotton Association says imports rose 86.6% in the seven-months from September to the end of March, reaching 3.241m tons.

The surge is the result of government efforts to build national stockpiles in an effort to ensure domestic cotton supplies and help avoid future fluctuations in cotton prices.

In March, China imported 625,000 tons of cotton, a rise of 1.5% over February, and 126.1% higher year-on-year. The average import price was $2,330 per ton, which was 24.8% lower than in the same month last year.

China is the biggest user of Indian cotton, but a decision by the Indian government earlier this year to restrict its cotton exports meant India's share of the total fell to below 50% in March. Earlier in the season China had taken around 85% of India's total cotton exports.

In terms of other source countries, the US continued to recover and accounted for one-third of total imports, Australia saw a "slight increase", while India, Brazil and Uzbekistan "declined a little."

Inter-governmental group the International Cotton Advisory Council (ICAC) most recently forecast that a surge in cotton imports into China is set to boost global cotton trade this season, and is also likely to keep cotton prices low.

Sectors: Fibres & fabrics, Sourcing