China’s yarn production by medium and large textile mills hit a monthly record high of 2.214 million MT in June, 8.14% more than the month before and 10.74% more than the same period of last year. Yarn production totaled 11.036 million MT in Jan. ~ June and 20.39 million MT in the first eleven months of 2008/2009 (Aug. ~ July), up 7.32% and 6.49% respectively on the year-on-year basis.
BOABC estimates that textile mills may have consumed 1.016 million MT in June, 5.065 million MT in Jan. ~ June and 9.502 million MT in the first eleven months of 2008/2009, up 7.17%, 3.9% and 2.61% respectively on the year-on-year basis. Compared with the previous month, textile mills’ cotton consumption may increased 8.16% in June.
Taking into account of cotton consumption by small mills, the textile industry’s cotton consumption may be 1.032 million MT in June, 5.066 million MT in Jan. ~ June and 9.814 million MT in the first eleven months of 2008/2009.
734,700 MT reserved cotton was put to auction in June and 63.99% of them were sold at an average price of RMB13,125/MT (in terms of Cotton 328 delivered to textile mills).
Cotton inventory was 3.899 million MT at the end of June, suggesting a stock/consumption ratio of 3.7. Of the inventory, 3.204 million MT were state reserve, 464,000 MT were textile mills’ stock and 223,000 MT were commercial stock, representing 82.17%, 11.91% and 5.72% of the total. On-farm cotton stock was below 10,000 MT.
619,000 MT reserved cotton was put to auction during July 1 ~ 17 and 75.625 of them were sold at an average price of RMB13,174/MT (in terms of Cotton 328 delivered to mills). The auction price was above the market price of RMB12,898/MT.
BOABC predicts that cotton consumption and inventory may be 10.82 million MT and 3.044 million MT in 2008/2009.
According to the State Statistics Bureau, the nation’s pure cotton yarn production, mixed yarn production and chemical fiber production were 1.718 million MT, 214,000 MT and 282,000 MT in June and 8.652 million MT, 1.029 million MT and 1.357 million MT in Jan. ~ June.
At a cotton ratio of 80.98% in June and 81.66% in Jan. ~ June in mixed yarn, cotton consumption was about 1.793 million MT in June and 9.013 million MT in Jan. ~ June, up 5.9% and 3.4% respectively on the year-on-year basis.
Considering 6% waste and 15% reclaimed fiber, cotton consumption was 1.615 million MT in June and 8.12 million MT in Jan. ~ June. Cotton consumption may total 16.24 million MT this year, slightly less than last year.
