Persistent uncertainty holds mills back from buying cotton
Cotton industry information resource Cotlook has said in its market summary for May that it now estimates that global raw cotton consumption for the 2024-2025 season will reach 24.6 million tonnes.
This is a reduction of 138,000 tonnes compared to the previous forecast. Cotlook attributed the lower figure to declines in demand in India and Pakistan, only partially offset by increases elsewhere.
For season 2025-2026, it now estimates global raw cotton consumption of 24.42 million tonnes, down by 525,000 tonnes. It said this took account of predicted reductions in consumption in China, Pakistan and India.
Meanwhile, it estimates that output for 2025-2026 will be higher and that, at the end of the season, production will exceed consumption by 1.25 million tonnes.
“Given the persistent uncertainty surrounding trade relationships for the coming months, mill buyers in most markets remained unwilling to commit to fresh business beyond gap-filling,” Cotlook said.
Apart from the uncertainty around tariffs imposed by the US in the last two months and retaliatory counter-measures from its trading partners, Cotlook reported on an industry-specific dispute between Bangladesh and India.
The government in Bangladesh announced that it would not allow garment manufacturers to bring imports of yarn across its land border with India. The government in New Delhi has since retaliated by banning imports of finished garments to come across the border in the opposite direction.
