The Import Cotton Price of Jiangsu Port Reach A New high On Jan

    According to the statistic of Nanjing Customs, The import cotton price of Jiangsu Port reached 2651 USD per ton on Jan, 2011 and got a new record. The reasons are the strong demand of domestic textiles and apparels industry and the tight supply of global cotton.

    The import cotton price of Jiangsu Port reached 2651 USD per ton on Jan, 2011, which increased 61% year on year and 8.3% mouth to mouth. The Nanjing Customs analyzed that the main reason of the high cotton price is the big gap between the demand and supply. According to the statistic from CNTAC, the total output value of textiles enterprises above designated size increased 25% year on year in 2010, which drive the demand for cotton of downstream textiles factories. Meanwhile, the quality and quantity of domestic cotton were influenced by the low temperature, continuous strong rain, and other extreme weather.

    In addition, according to the statistic of USDA, the global output of cotton is 25.148 million tons, and the amount of consumption is 25.387 tons, plus the shortage of 3.7 million tons in the year before last year, the supply of cotton in 2011 is quite tight and it made the cotton price keep high.

    The dramatically rise of cotton price aggravated the risk of downstream textiles factories. Each 1% rises of cotton price lead to 0.53% drops of profit. In addition to the continuous increasing cost of employing workers and the appreciation of RMB, the operation of textiles enterprises is not optimistic in 2011.

    Therefore, Nanjing Customs advised that the cotton storage system should be completed, which adjusts the import quota and state-reserved cotton and guarantees domestic cotton supply. Furthermore, to implement the policy of subsidy for cotton fine breed, increase the subsidy for planting cotton; enhance the positive of peasants to plant cotton; stabilize domestic cotton output; monitor the supply and demand trend of imported cotton, control the importation and avoid chasing high imported cotton price aimlessly.