5 May 2017
China Sourcing Update: Prices of Natural Textile (Apr 2017)
- Cotton price indices edge up in April
The price indices of cotton dropped slightly during early to mid-April and rose afterwards. For example, after falling from 15,862 on 31 March to 15,846 on 13 April, the CC Index 3128B went up to 15,949 on 28 April (see exhibit 1).
According to the local media, the supply of cotton remained abundant in the month, boosted by the ongoing sales of state cotton reserves. 2 As of end-April, about 870,000 tonnes of cotton reserves had been auctioned.3 However, a rise in the prices of cotton futures in China and a strong restocking demand from downstream manufacturers pushed up the spot prices of cotton during mid- to late April.
Looking ahead, the supply of cotton is expected to remain abundant in the coming months, as the sales of state cotton reserves will continue till end-August. Thus, we expect cotton prices to peak soon.
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