China Cuts Cotton Imports to Support Local Crop
May 16, 2014

The U.S. government expects a fourth straight year of record cotton inventory by July 2015 as China, the world's number one textile market, restricts imports to favor domestic fiber.

In the report, the U.S. Department of Agriculture warned that China will cut imports by one-third as the government promotes domestic fiber, a move that has reinforced fears about changes in Beijing's stockpiling policy and the impact on prices. The government said it expects ending stocks to rise to nearly 102 million 480-pound bales, a fourth consecutive record, and up 4 percent from the 97.91 million expected for the current crop year.

Some 60 percent of that total would be in China, enough to supply the country's textile mills for almost two years. The report will underscore uncertainty about Beijing's overhaul of its stockpiling policy, which has bolstered demand and supported prices over the past three years.

Reprinted in part from Textiles in the News