Spinners from Argentina may import 35,000 tons of cotton
20 Jun '06
4 min read
United States Department of Agriculture (USDA) Foreign Agricultural Service (FAS) announces cotton and products reports as follows:
Report Highlights: Despite an expected larger local cotton production in Marketing Year (MY) 2006-2007,Argentine spinners are likely to import 35,000 tons of cotton. Lint exports are projected to continue low at 12,000 tons. Domestic consumption of cotton is forecast to achieve a new record at 160,000 tons.
The Argentine cotton chain is projected to import 35,000 tons of cotton lint in Marketing Year (MY) 2006-2007, the highest level of the past three years, and the second highest level ever. This is as a result of a shorter than expected 2005-2006 cotton crop and to a continuing strong recovery of the domestic textile industry.
Cotton imports in MY 2005-2006 are expected to total about 30,000 tons, valued at approximately US$34 million. During August 2005/March 2006, 28,000 tons were imported.
Most cotton imported is good quality, mostly Strict Low Middling (SLM). Brazilian cotton accounted for 95 percent of Argentine imports in Calendar Year 2005, and 85 percent of what was so far imported in 2006 (through April). Although local spinners have to pay in advance to import Brazilian cotton, they prefer it due to the lack of contamination, quality, volume, homogeneity, and relatively short transportation time. Some cotton is also imported from Paraguay.
Cotton lint from the U.S. is not frequently imported. Although several merchants offer it, it has several disadvantages versus the regional product. In general, freight costs and import duties (6.5 percent) significantly increase the final cost.
marketing@alchempro.com
