13 April 2017
China Sourcing Update: Prices of Natural Textile Materials (Mar 2017)
- Cotton price indices go down slightly in March
The price indices of cotton edged up in early March and have dropped since then. For example, the CC Index 3128B rose from 15,963 on 28 February to 15,975 on 8 March, before falling to 15,862 on 31 March (see exhibit 1).
The slight decline in cotton prices in March was mainly caused by an increase in the supply of cotton boosted by the ongoing sales of state cotton reserves. 2 As of 31 March, about 466,000 tonnes of cotton reserves had been auctioned.3 A fall in the prices of cotton futures in China in the month also put downward pressure on the spot prices of cotton.
Going forward, the supply of cotton is expected to remain abundant in the near term, as the sales of state cotton reserves will continue till end-August. Therefore, we expect cotton prices to trend slightly downward in the foreseeable future.
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