Monthly Report: National Cotton Planting Area Declines, Import Tariff Quotas are Issued (Apr. 2021)

Monthly Report: National Cotton Planting Area Declines, Import Tariff Quotas are Issued (Apr. 2021)

In April, sales in the textile market were smooth, corporate orders were sufficient, the overall operating rate was relatively high, raw material stock were further consumed, and commercial stock continued to decline. Affected by many factors such as the epidemic in India and the rise in commodity prices, domestic cotton prices rose at the end of the month, and the price gap between domestic and foreign cotton narrowed. According to a survey by the CCA, the national cotton planting area in 2021 has dropped year-on-year, and the planting progress has exceeded 90% faster than the same period last year. At the end of the month, in order to guarantee the cotton demand of textile enterprises, the state issued 700,000 tons of cotton import quotas, all of which were non-state trade quotas. The CCA predicts that cotton consumption in 2020/21 will be 8.1 million tons, an increase of 5.9% year-on-year; imports will be 2.35 million tons, an increase of 46.9% year-on-year, the ending stock will be about 8.05 million tons, an increase of 1.8% year-on-year, the production will be 592 10,000 tons, a slight increase from the same period last year.

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