World's largest buyer of cotton, China, has planned increase in imports of cotton by 2.5 percent to a record 4.1 million metric tons as domestic mill demand rises faster than production, the US Foreign Agriculture Service informs.
Chinese mills are estimated to use 7.9 percent more cotton by increasing imports mainly from the US, a report from US embassy staff in Beijing report.
Increased exports and domestic demand for textile and apparel products are fueling high imports, Jim Butterworth and Wu Xinping, US Department of Agriculture analysts in Beijing, mentioned in that report.
Chinese cotton imports for first two months of 2006 went up to 622,652 metric tons, up from 183,675 tons during same period compared to last year, it infers.
Plantings will be increased by farmers to 6 percent at 5.364 million hectares (13.25 million acres), to raise output by 6.1 percent to 6.05 million tons.
Investments for projects rose 39 percent to $46 billion in 2005 compared to last year, as almost 6,738 textile projects were under construction in China last year compared to 5,302 projects in 2004.
Value of textile output rose 26 percent last year, and profits rose 36 percent over last year.
Reserve inventories of China were estimated at 1.26 million tons, down 56 percent estimated earlier, July 2005 end.
This will further reduce projected inventories July end this year to 1.51 million tons down from 2.89 million as forecast earlier, analysts said.
July cotton delivery prices fell 0.15 cent to 51.57 cents a pound on New York Board of Trade.
Prices have come down 9.6 percent from a year ago level recording 23.72 million bales last year, up 2 percent over 2004, announces the report.
marketing@alchempro.com
