China cotton market analysis

China cotton inventory

New cotton output: ginning factories in Xinjiang and inland have not restarted work basically in Feburary, and ginning volumes are supposed to be around 14 thousand MTS. From early Mar, ginners in Xinjiang began to resume operation successively, and ginning volumes of new cotton increased obviously from previous month, while operating rate in inland remained very low as growers in inland were unwilling to sell seed cotton with falling cotton prices. In Mar, new cotton ginning volumes are assessed at 87 thousand MTS.


State cotton reserves: from Mar 1 to Mar 31, 208 thousand MTS of new cotton was reserved into state warehouses, so this part of volumes was deducted among the all social stocks.


Import volume assessment: in Mar, the arrived imported cotton was mainly procured during Dec 2019 and Jan 2020, and during this period, there was no impact of the coronavirus pandemic, and defaults were rarely to see.
Volumes of Brazilian and Indian cotton remained large in Mar. But from Sep 2019, the domestic cotton prices were almost lower than international cotton, so the monthly import volumes were lower from last season. In Mar, cotton imports may reach 120 thousand MTS, down 19% year on year.

china cotton market 2020

China cotton consumption

The resumption of cotton yarn mills, the largest cotton consumer, continued to improve in Mar.

From mid-Mar, cancellation in textile and apparel export orders was seen, but not many cotton yarn mills suspended operation or cut production immediately, and most of them could maintain the operation.

But affected by the pandemic, consumption of cotton has reduced much year on year.

According to CCFGroup, China cotton consumption is assessed at 612kt in Mar, up 83.7% month on month, but down 16.7% year on year.

In the first quarter of 2020, cotton consumption is assessed at 1.408 million tons, a fall of 27.5% year on year.

In 2019/20 season (from Sep 2019 to Mar 2020), cotton consumption is assessed at 4.182 million tons, down 14.5% year on year.

China cotton consumption 2020

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