Chinese cotton price falls 13 per cent year-on-year

Gurjit Degun
21 May 2014

☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily 

21 May 2014 | Gurjit Degun

The price of Chinese cotton has fallen by around 13 per cent year-on-year as China begins to sell some of its reserve stocks.

According to Mintec, the current price of cotton in China is 17,190 Chinese Yuan per metric tonne (£1,631) compared to 20,140 Yuan per metric tonne (£1,912) at the end of May 2013.

China’s current cotton supply accounts for 60 per cent of the world’s reserve stocks, explained Mintec. It added that the price decline follows the Chinese government’s announcement in April that it would lower the starting price of its cotton reserves being sold in its daily state auction.

“In addition, 200,000 tonnes of high quality imported cotton has also been offered for bidding in the market,” said Mintec. “As the stockpiling policy comes to an end in China, the government will no longer purchase cotton from farmers, whose inventories will increase as a result. Instead, to support farmers, the government will introduce direct subsidies to cotton growers in the next 2014/15 season.”

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE