Report Highlights:
Taiwan cotton imports are forecast at 240 thousand metric tons in 2006/07, and estimated at 250 thousand tons in 2005/06. This is a reduction from 291 thousand tons in 2004/05 when low prices inspired stock building. U.S. market share exceeded 50 percent in 2004/05 and will do so again if early marketing trends continue.
Taiwan cotton consumption, and the number of cotton spindles, seems to be declining more slowly than the overall textile industry. While our forecast is for a continued slow decline in Taiwan cotton consumption, some observers feel the decline has ended.
Production
Taiwan is not a cotton producer, and imports all cotton consumed. Consumption Cotton consumption on Taiwan in 2006/07 is forecast at 260 thousand metric tons, a decrease of five thousand tons from estimated 2005/06 cotton consumption. This is a continuation of a long-term decline in the Taiwan textile industry.
Unlike other types of textiles, Taiwan cotton consumption is expected to remain relatively constant. Industry contacts maintain that the price of cotton does not affect the quantity of cotton clothing consumed in Taiwan, and that demand is consumer driven. A key component of cotton demand in Taiwan is the number of cotton spindles, which increased in 2005.
While cotton spindle numbers have been holding up better than overall spindle numbers over the lastseveral years, they have been declining, and a one-year increase followed by further declines is not unprecedented.
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