Wednesday, December 8, 2010

China - Analyses of cotton price situation

29 Nov, 2010 - China  
The price of cotton is unwaivering, and in November, it hit the highest point in ten years, and compared to 2008, cotton prices have even quadrupled. 
With clothing raw material prices increasing, clothing prices are also rising incrementally. 
Since the beginning this year, cotton prices have been on the rise, and mid-September, cotton prices once again increased markedly. 
Since September, the 2010 China cotton price index has soared, from September's 19,328 RMB jumping to October's 24,628 RMB, an increase of 5,300 RMB. At the end of October and early November, cotton prices increased sharply, with the Chinese cotton price index reaching 31,302 RMB per ton in November, its highest level in the ten years since 1999. 
Chinaqualitycrafts.com analyzes that in the previous two years, cotton prices were relatively low, the cotton sales price is less than corn and soybean, so farmers would rather to cultivate corn, soybean, and were not willing to plant cotton. Plus the cotton growth cycle is long and the picking labor cost is higher, so cotton farmers cultivation enthusiasm is not high. 
The data shows that China cotton output was 6.4 million tons in 2009, which decreased 1.10 million tons compared with 2008, the declines nearly reached 15 percent. By 2010, the reduction in output continues. 
Chinaqualitycrafts.com reports that due to bad weather, it is expected that this year the national total cotton cultivation output will be 6.36 million tons, which is 5.5 percent lower than the same period of last year. 
With cotton yarn and other clothing raw material prices increasing, clothing price will also comprehensively rise in 2010. This year both cotton and chemical fiber clothes prices will increase, compared with previous two years, but this year the price increase is markef, with cotton clothes prices increases in around 20 percent. 
Source: Chinaqualitycrafts.com

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