Textile mills in China are hoping to get low-priced cotton as the Government has resumed annual sales of state reserves. At least 30,000 tonnes of cotton per day has to be offered for sale until the end of August, informed the National Development and Reform Commission.
“Most of the companies have low stocks, as they expect cotton prices would drop with the coming state reserves auction,” said Ye Jianchun, Vice President of China Cotton Textile Association (CCTA), at an annual cotton industry conference held in Beijing recently.
Cotton supply was hit hard last year due to delay in auction until May from March, and poor quality in the first few sales which led to panic among mills. But this time the mill owners are confident that the quality of auctioned cotton would be quite good. Also, the traders in the country have expressed confidence that the Government would be able to meet its daily auction target this time, and prices will drop, at least in the short-term.
Also Read – ICAC predicts rise in cotton export from India
China’s state sale is being closely monitored by the international market as it holds more than half of the world’s stocks in reserves.
