Cotton markets in doldrums as China slashes import quotas
25/09/2014
The government will only provide import quotas next year for the 894,000 tonnes that it is required to offer at low duties under commitments with the World Trade Organisation, according to officials, meaning its textile companies and mills will have to buy from pricey domestic supplies. It added that it will offer subsidies to its cotton farmers, despite saying recently that these would be limited to Xinjiang.
China's cotton imports dropped by 32% in the 2013/14 year to 3 million tonnes. It holds 60% of the global supply as part of a programme to support mills but which led to inflated prices.
The new policy could have a knock-on effect across the textile industry as cotton’s price falls. Austrian cellulose fibre maker Lenzing cited China’s stockpiling as damaging its profits as ripples were felt in other fibre markets.
Share this story:
