Monthly Report: Cotton Prices Continue to Rise, Spinning Enterprises Under Pressure (Jan. 2022)

In January, near the Spring Festival, new cotton processing is nearing the end, market resources continue to increase, the market supply is sufficient. Some textile enterprises replenished the stock right amount before the Spring Festival holiday, but they did not accept the high price of cotton. The overall purchasing intention was still not strong, and most of them bought at will. Textile enterprises had holidays at the end of the month, and yarn production decreased slightly. Affected by rising commodity prices, cotton prices at home and abroad continue to rise. The international cotton prices hit a new high in nearly a decade, the increase is higher than domestic, and the difference between domestic and foreign cotton prices is further reduced.

According to the CCA, the total production in 2021/22 was 5.774 million tons, down 2.5% year on year. Estimated imports of about 2.75 million tons, consumption was 8.34 million tons, down 1.02% year on year, with supply and demand basically in balance.

China Cotton Supply and Demand Balance Sheet (Jan. 2022)      Million tons