Yarn production totaled 12.229 million MT in the first seven months of 2008/2009 (beginning in Aug.), an increase of 4.71% on the year-on-year basis.

BOABC estimates that cotton consumption for yarn production was 774,000 MT in Feb. and 1.4773 million MT in Jan. ~ Feb. Cotton consumption for yarn production is estimated to be 6.391 million MT in 2008/2009 by Feb., an increase of 0.52% on the year-on-year basis. The nation¡¯s total cotton consumption is estimated to be more than 10.46 million MT this year.

Below is an analysis of cotton consumption based on different varieties of yarn production. According to the State Statistics Bureau, cotton yarn and mixed production recorded 1.186 million MT and 133,000 MT in Feb., 10% and 8.1% more than the month before, up 13% but down 5.7% on the year-on-year basis respectively. Cotton yarn and mixed yarn production recorded 15.877 million MT and 2.305 million MT in Jan. ~ Feb., 0.2% and 22.4% less than the same period of last year respectively.

The decreased production of cotton yarn and mixed yarn reflected the shortage of cotton supply on yarn production. The decline of international oil price spurred chemical fiber production on the other hand.

At a cotton ratio of 81.95% in mixed yarn in Feb. and 82.04% in Jan. ~ Feb., cotton consumption was 1.2326 million MT in Feb. and 2.3536 million MT in Jan. ~ Feb.

Taking into account of 6% waste and 15% reclamation of old cotton, cotton consumption was actually 1.1105 million MT in Feb., 9.9% more than the month before and 12.1% more than the same period of last year. In the same way, cotton consumption was 2.1206 million MT in Jan. ~ Feb., a drop of 1.3% on the year-on-year basis.