Cotton Imports In June Decreased By Nearly 26% Over The Same Period. Why?

China June

Imports fell by nearly 26% over the same period last year, because international cotton prices are relatively high and lack of export quotas limits the pace of overseas purchases.

As the world's largest cotton consumer, China imported a total of 161800 tons of cotton in June. Imports dropped by 33% to 933900 tons in the first 6 months of the year.

The Chinese government is trying to boost domestic cotton consumption. Traders said they only issued 894 thousand tonnes of import quotas this year, the minimum amount under the WTO agreement.

They also said that these quotas had been used up.

Traders also pointed out that overseas cotton prices are also relatively expensive.

"The price gap between domestic and international cotton has been narrowing. Even if the cotton plant has quotas, the attraction of imported cotton is not so great," Reinhart, a Swiss trading company, said in its weekly market report.

Huge volume of commercial inventories and excessive sales of cotton to suppress China

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State store sales opened last week, increasing market supply.

After the stock market plummeted last week, Zhengzhou cotton contracts were also not spared.

The purchase of state-run India Cotton Corp (CCI) supported cotton prices in the country.

Most of the cotton has been sold out.

A trader who did not want to reveal his name said, "as long as CCI continues to make global cotton prices relatively strong, China will not import cotton in large quantities."