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  • 6.2.4-MARKET PROFILES-EXPECTED MARKET DEVELOPMENTS

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  • Expected market developments

    Chapter 6 - Market profiles - China 

     
     
    During the period 2002–2006, China’s textile cotton demand observed an average growth of 15%. In 2007 China’s cotton consumption is likely to exceed 10 million tons. China’s cotton yield has observed large fluctuations over a long period of time, mainly because fluctuations in market price directly affect planted acreage from year to year. In the 2006/07 crop year, China’s cotton production reached 6.73 million tons, setting a new historical record. Since China’s cotton and grains compete for land, further growth in cotton plantation is limited. Therefore, in the long term, China’s supply–demand imbalance will continue, and annual cotton imports are likely to exceed 4 million tons. China’s cotton stockpiling structure has changed with the introduction of governmental macro control in recent years and changes in the way cotton is imported into China. In addition to the normal commercial and industrial stockpiling, national reserved cotton and imported cotton stocked by consignment at ports are also available for China’s textile cotton consumption.