资讯 1 10 英文网 307 Feature 550699 Textiles and Cotton are Blended Forever 2015-07-06 10:27:00 yangfang
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Textiles and Cotton are Blended Forever
2015-07-06

Muqeet Bokhari of Icotton.Ltd has BBA & MBA degrees from USA and been associated with the textile industry for over 21 years & currently based in China. He has hands on experience of running and working in ginning, spinning, knitting and weaving industries. He also has global exposure of developing textile related businesses  

  

Four countries who have direct impact on cotton price are China, USA, Pakistan & India; they have all seen a drop in cotton prices from June 2014 to May 2015 on average of around 25% in the period under review. 

  

Currently, China holds more than 50% of the global cotton inventory.  India with a bumper crop this year and USA with reduction in exports are also carrying surplus inventories.  Pakistan is not a major exporter of cotton but domestic crop size if covers more than 80% of the country’s cotton requirement keep the price of cotton under control.   

  

Global textile exports of cotton producing countries may look down from the previous year in terms of US$ but may not be less in terms of quantity.  We have to keep in mind the drop in price of raw material and global oil prices resulted in bringing down the cost of finished items and their respective sale prices. 

  

Future of cotton will keep this trend going if countries maintain the same level of cotton production and China continues to maintain the current level of cotton inventory. 

  

Falling price of raw material is not the reflection of textile market going down.  It’s the excess raw material which is making the prices come to a level which will restart closed or semi operative textile units back into production and help in a competitive and saleable value addition 

  

China should keep buffer cotton stock levels around current position to control raw material prices.  The textile industry should thank the Chinese Government for building cotton stocks which today resulted in taking the cotton price to a workable stage. 

  

Growing population in Asia in coming years will make it the biggest market in the world and cotton is here to stay.