China Cotton Association recently published Report of the situation of cotton in November, to replace imported cotton in November for the fourth consecutive month the number of substantial reduction in cotton prices continued to fall, is expected to 2008 China’s annual cotton production of the total 7,800,000 tons. This is mainly because of the international financial crisis, China’s textile and garment exports continued to fall, the cotton textile enterprises to use the weaker demand. Despite the introduction of a number of countries on the textile industry to support the policy, continue to increase cotton Shouchu efforts, but hard to show short-term effect of the policy.

The report shows that 2008 annual September to November, China imported a total of 300,000 tons of cotton, 36% year-on-year decline; a total yarn output of 5,690,000 tons, up 6.4% year-on-year growth rate dropped 7 percentage points; textile and garment export a total of 50,200,000,000 U.S. dollars , Up 5.4% year-on-year growth rate has dropped by nearly 16 percentage points. The suspension will affect the international economic environment, this year’s sharp increase in textile exports drop in demand for cotton textile enterprises reduced cotton market transactions do not wang, prices continued to fall, standard-class cotton marketing year average price of 12,127 yuan / ton, up 10.4 percent decline.

By the international financial crisis, China’s textile and garment exports continued to decline, the monthly rate of decline accelerated in November exports of 15,430,000,000 U.S. dollars, the ring fell more than 8%. Although textile production continues to grow, but growth slowed significantly, the month yarn production 1,884,000 tons, the chain grew 1.2 percent. Sales of textile products are still in the doldrums, demand of textile enterprises, the early monthly prices have fallen sharply in the latter part of the policy supporting picked up under the stable. China in November cotton price index (CC Index328) the average price of 10,830 yuan / ton, down ring than 1492 yuan / ton, down year-on-year 2705 yuan / ton. The same period in Zhengzhou cotton futures prices and the National Cotton Exchange is to bring together electronic dropped, stabilized after a rebound.

According to customs statistics, in November 2008 China imported 76,100 tons of cotton valued at 125,000,000 U.S. dollars, the average import price of 1641 U.S. dollars / ton, respectively, than in October fell 20.8 percent, 24.6 percent and 5.2 percent respectively over the same period in 2007 decreased 25.2% , Up 18.6 percent and 8.8 percent. China Cotton Association said that as domestic demand at home and abroad as well as the lack of after-tax price, to replace imported cotton in November for the fourth consecutive month the number had been reduced significantly.

At the same time, the mainland in November to the beginning of cotton reserve, the same month a total of 384,350 tons transactions, together with the pre-volume, the year 2008 to save a total of 658,550 tons, accounting for 1,220,000 tons Shouchu planned volume of 54%. Cotton prices fell after the first stable prices rebound slightly, but the sales market is still in the doldrums. According to the China Cotton Association, monitoring, the month-class standards of seed cotton processing enterprises in the average price of 4.7 yuan / kg higher than in October was down 0.53 yuan / kg lint discount 10,246 yuan / ton higher than in October fell by 1145 yuan / ton.

In the third quarter of 2008, the increasingly severe international financial crisis, and gradually spread to the real economy, China’s textile and apparel exports have been seriously affected, thus affecting the cotton industry after the Road. In view of this situation, the state introduced a number of policies to support the textile industry, continue to increase cotton Shouchu efforts greatly enhanced the confidence of the industry, the cotton market prices go up again, seed cotton prices have stabilized. However, the effect of the policy need to show a certain period of time, Shouchu rules have yet to be perfect. According to the Association of the main cotton producing areas in a recent survey, next year’s cotton farmers around the intention to different levels of reduction, the largest drop of 30%, at least more than 10%.