Monthly Report: New Cotton Open Scale Prices are High, Textile Demand Weakens (Sep. 2021)

Monthly Report: New Cotton Open Scale Prices are High, Textile Demand Weakens (Sep. 2021)

In September, new cotton harvesting began. Due to the weather, the cotton picking progress was slower than last year. During the month, the number of new cottons on the market was relatively small, and the reserve cotton transactions were active. Driven by the increase in commodity prices, cotton prices at home and abroad have risen sharply. The price of abroad has risen higher than domestic, and the price gap between domestic and foreign cotton has narrowed. Textile enterprises have restricted electricity policies, and the operating rate has declined, and the demand for cotton has weakened. The decline in inventory has shrunk. In order to promote the smooth operation of the cotton market and meet the cotton demand of cotton spinning enterprises, the relevant departments will take measures such as increasing the number of reserve cotton entering the market and appropriately increasing the number of cotton import quotas in accordance with market changes.

According to the CCA’s forecast, the total cotton production in 2021/22 was 5.834 million tons, down 1.52% year-on-year, consumption and imports remained stable at 8.43 million tons and 2.75 million tons, ending stock was adjusted to 8.291 million tons. A year-on-year increase of 1.8%.

China Cotton Supply and Demand Balance Sheet (Oct. 2021)      Million tons