China Cotton Price
❖Un-favorable Environment for China Textile Industry
▪ created a lot of trade surplus benefiting from the good quality and cheaper price,
China Cotton Price
❖Cotton production in Main Areas

China Cotton Price
❖Cotton produce
❖Cotton production in 2007
▪ In 2007 cotton plantation is 81.7 million mu which is 2.2% higher than that of in 2006. Output will be 7.07mil.tons in early September this year.


China Cotton Price
❖China cotton consumption ▪ For 2006-07 is 10.88 million tons, while for the 2007-08, the predicted cotton consumption will be 11.75 million tons. 。 ▪ In 2006, China’s yarn production is 17.22 million tons. By the end of July in 2007 , the yarn production is 17.33 million tons.

China Cotton Price
❖Unfavorable Environment for China Textile Industry
▪ above 95% are non-stated-owned enterprises in textile industry, one of the most market-oriented industries in China.
▪ and now are suffering from tense trade frictions and technical barriers caused by this trade gap.

Unfavorable Environment for China Textile Industry

China Cotton Price
❖China cotton consumption
▪ in the second quarter, the GDP growth in the first half of 2007 is 11.9%, and the annual GDP growth is expected to be 10%. For the past 4 years, the growth has been holding 9% and up.
▪ increase of domestic labor costs, the raise of raw material price and the decrease of the tax-return for textile export, the profits margin of the textile industry is extruded further.
▪ China’s textile industries export related ratio is up to 53%.
▪ China’s per capital consumption of fabric also shown a rapid upward. In the past three years, the increase is 15% per annum and will maintain the strong growth.
❖The Influence of RMB appreciation
▪ China’s cotton & textile industry chains in main three elements: raw cotton—yarn & fabrics — apparel and textile. Products are distributed to two markets: for export and for domestic demand.
Sliding Import Duties Affect the Price

China Cotton Price
❖Domestic Supply & Demand Data
▪ In 2006 China enjoyed a cotton harvest with plantation 79.97mil. mu and 6.73 million tons output 。(Data from NBS -- National Bureau of Statistics of China ).
中国棉花市场分析报告Cotton
2020/8/19
目
录
China’s Cotton Price in 2007
Domestic Supply & Demand Data Unfavorable Environment for China Textile Industry The Influence of RMB appreciation Cotton Net Gap change from Rigidity to Flexibility