MUMBAI (Commoditiescontrol) - Cotton yarn imports by China in March rebounded sharply to 248,600 tonnes, up 100.31 percent from February and up 39.6% from 1,78,000 tonnes last year same month.
This huge jump in yarn imports by the country can be clearly attributed to the Chinese government’s decision to restrict cotton imports quota in 2014-15 year, in order to lessen stock at the state-reserves However, the quality of cotton stocked-up in the state-reserves is poor.
As a result, textile mills in the country preferred importing yarn rather than paying high duty on cotton. Moreover, yarn imports have become cheaper over the time.
In March, bales market the world over witnessed bullish activity with prices moving on the upside. In the contrary, overall movement in yarn markets was largely steady to firm.
China's cotton imports in March dropped around 40 percent from the same month a year ago, hit by strikes at the U.S. West Coast ports and as Beijing issues less import permits to mills. Beijing has sought to cut imports this year to stimulate demand for domestic cotton after it halted a state stockpiling programme that had previously bought up most of the Chinese crop. It has said it will issue no more than the 894,000 tonnes of quota it has committed to under World Trade Organisation rules.
China’s demand for Indian cotton has come down to 10 percent this year compared to previous 50 percent. So much so that only 4.5 million bales of cotton have been exported as on 26 April 2014-15 compared to 11.79 million bales exported in 2013-14 same period.
(By Commoditiescontrol Bureau; +91-22-61391533).
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