China Monthly Cotton Report

8/9/2019 China Monthly Cotton Report

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Beijing Shennong Kexin Agribusiness Consulting Co., Ltd

Add: No.99, Zhongguancun East Road, Haidian District, Beijing 100190, PRC

Tel: 86-10-62589781 Fax: 86-10-62589754 E-mail: [email protected] Website: www.bjsn110.com

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CChhiinnaa MMoonntthhllyy CCoottttoonn MMaarrkkeett RReeppoorrtt

March 2010

I. Cotton Market in March .....................................................................................................3

Yarn Price Increase Outstrips Cotton Price Increase. Spinning Industry Profit Advancing................ 3

II. Cotton Market Information in March.............................................................................. 4

1 Domestic Cotton Supply in 2009/2010 Tends to Tight .................................................................... 4

2 The Cotton Growing Areas in 2010 is Hard to Recover .................................................................. 4

3 The Demand for High Account Yarn is Increasing Long Staple Cotton Price Increases .............. 5

4 Prices of Cotton Yarn Will Continue to Increase.............................................................................. 6

III. Cotton Growing Situation and Forecast in March.........................................................7

Growing Areas in 2010 is Hoped to Remain the Same as Last Year .................................................. 7

IV. Analysis of Cotton Import in February ...........................................................................7

1 Cotton Imports Record 221,000 MT, Up 2.86 Times....................................................................... 7

2 India Still Remains as the Largest Cotton Import Origin Country, but Down by 44.7% from

Previous Month ................................................................................................................................... 7

3. Xinjiang Increases 741.8% from Last Month in Imports................................................................ 8

4 Imports at Urumqi Customs Increased 2% from Previous Month ...................................................8

5 General Trade Became the Major Import Trade Mode .................................................................... 8

V. Analysis of Economic Situation of Textile Industry in February ....................................9

1 Yarn Production Is 1.56286 Million Tons, Up 8.3% from the Same Period Last Year .................... 9

2 Yarn Production in Jiangxi and Sichuan Increase Significantly....................................................... 9

3 Cotton Cloth Production Rises 37.91%............................................................................................ 9

4 Cotton Cloth Exports Increases 58.25% Year-on-Year .................................................................. 10

5. Textile and Apparel Exports Dropped by 18.8%........................................................................... 10

VI. Analysis of Cotton Supply and Demand........................................................................10

1 Forecast Increase in Consumption and Imports in 2009/10........................................................... 10

Attached Tables ...................................................................................................................... 11

Attached Table 1, Chinas Cotton Production Forecast, 2009........................................................... 11

Attached Table 2, China Uncombed Cotton Import Volume by Original Country, February 2010 .. 11

Attached Table 3, China Uncombed Cotton Import Volume by Province, February 2010 ............... 12

Attached Table 4, China Uncombed Cotton Import Volume by Customs, February 2010 ............... 13


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China Monthly Cotton Market Report Beijing Shennong Kexin Agribusiness Consulting Co., Ltd



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Attached Table 5, China Cotton Import Volume by Mode, February 2010 ...................................... 13

Attached Table 6, China Yarn Production by Province, February 2010............................................ 13

Attached Table 7, China Textile and Apparel Export Value by Month, 20092010 ....................... 14

Attached Table 8, China Cotton Supply and Demand, 2005/062009/10....................................... 15

Attached Table 9, Global Cotton Supply and Demand, 2005/062009/10 ..................................... 15

Attached Table 10, Global Cotton Supply and Demand, 2005/062010/11 ...................................15

Attached Figures .................................................................................................................... 16

Attached Fig. 1, China Uncombed Cotton Import Volume by Month, 2006-2010........................... 16

Attached Fig. 2, China Uncombed Cotton Import Price (CIF) ......................................................... 16

Attached Fig. 3, China Uncombed Cotton Imports by Original Country, February 2010 ................ 17

Attached Fig. 4, China Uncombed Cotton Imports by Province, February 2010 ............................. 17

Attached Fig. 5, China Uncombed Cotton Imports by Customs, 2008~2010................................... 18

Attached Fig. 6, China Uncombed Cotton Imports by Mode, February 2010 .................................. 18

Attached Fig. 7, China Yarn Production by Month, 2007-2010........................................................ 19

Attached Fig. 8, Yarn Production of Major Producing Regions, February 2010 .............................. 19

Attached Fig. 9, Yarn Production of Major Producing Regions, Jan-Feb. 2010............................... 20

Attached Fig. 10, China Cotton Cloth Production by Month, 2007-2010 ........................................ 20

Attached Fig. 11, China Cotton Cloth Export Volume by Month, 2007-2010.................................. 21

Attached Fig. 12, China Textile and Apparel Export Value, 2006-2010........................................... 21

Attached Fig. 13, Cotton Prices in CNCE, ZCE and ICE, 2008-2010.............................................. 22

Attached Fig. 14, Exchange Rate USD to RMB of Imports & Exports............................................22


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I. Cotton Market in March

Yarn Price Increase Outstrips Cotton Price Increase. Spinning Industry Profit

Advancing

Due to the economic recovery, international orders start to pick up, and sales of yarn and

cloth have increased too. Textile companies continuously adjusted up yarn prices. Price of

pure cotton yarn has increased significantly. On the other second, labors for textile companies

are insufficient and production capability is restricted, and as a result, the supply of yarn falls

short. In some regions, customers are lined up for the products.

After the Spring Festival, Xinjiang has slowed its pace of transporting its cotton to other

regions and cotton supply has becomes insufficient. Both the prices of cotton and yarn have

indicated increase.

Average prices of 32S cotton yarn was RMB22,428/MT in March, an increase of

RMB1182/MT. Meanwhile, CN Cotton B Index, climbed to RMB15,512/MT, an increase

of RMB576/ton. The spinning profit was 1508yuan/ton, an increase of RMB569/ton.

Figure 1, Processing Profit of Cotton Textile Industry, 2007-2010

-1,000

-500

0

500

1,000

1,500

2,000

2007/03

2007/05

2007/07

2007/09

2007/11

2008/01

2008/03

2008/05

2008/07

2008/09

2008/11

2009/01

2009/03

2009/05

2009/07

2009/09

2009/11

2010/01

2010/03

Uint: RMB yuan/MT

10,000

11,000

12,000

13,000

14,000

15,000

16,000

Processing Profit Cncotton B(328)


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II. Cotton Market Information in March

1 Domestic Cotton Supply in 2009/2010 Tends to Tight

Recently, State Statistic Bureau announced domestic output of cotton in 2009/2010 is 6.4

million tons. Taking the consideration of cotton imports and transportation of Xinjiang, the

market supply for domestic cotton tends to be tight.

1.1 The import volume of cotton from the international market is limited

According to March report from the U.S. Agricultural Department, the year end cotton

inventory in the U.S. amounted to 697,000 tons and 1.867 tons for India. The year-end

inventory of other countries is small. And as a result, the volume that is available for

importing to China is limited.

1.2 Xinjiang slows down its pace of transporting cotton to other regions.

According to the relevant department, from September 2009 to the end of Feb 2010, Xinjiang

has transported 1.49 million tons of cotton by rail, and there is about 1.5 million tons of

cotton to be shipped. Based on the transportation pace of first six months, monthly shipping

volume amounted to 250,000tons. The cotton that stored at the train station wont be all

shipped to inland till August.

2 The Cotton Growing Areas in 2010 is Hard to Recover

In 2009, profit of growing cotton increases significantly, but it is foreseen that the growing

areas will be about the same level from last year. The main causes:

2.1 Long Growing Period and Working Days

The growing period for cotton is the longest among all the commodities. Usually, it takes 23

working days to grow 0.067 hectares, four times longer than growing wheat, which is usually

six days.


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Table 1 Labor Days Comparison of Wheat, Corn, Rice and Cotton

Wheat Corn Rice cotton

Labor Days/Ha 90 120 135 345

2.2 Low Level of Mechanization and Labor Intensive

Due to the objective reasons, growing cotton still mainly depends on human labor. At present,

young and middle aged farmers have worked in the cities, and most labors remaining are

women and older farmers, and as a result, its difficult to accomplish the requisite cultivation

management in the growing procedure

2.3 Policies Favors Grains than Cotton

First of all is buying prices. Cotton buying price is driven by market and there is no

minimum buying price any more. In recent years, government announces plans on lowest

grains buying price before sowing or buying. There are both good quality seeds subsidy and

growing areas for growing grains, while growing cotton only enjoys the subsidy for good

quality seeds, which is about RMB15 every 0.067 hectare.

3 The Demand for High Account Yarn is Increasing Long Staple Cotton Price

Increases

Affected by the economic crisis, international market demand for high end product dropped

dramatically, such as high grade yarn. The profit of high account yarn is lower than common

medium and low account yarns, therefore, many domestic companies have reduced

production of high end cotton products and paid more attention to middle and low level yarns,

leading to demand and price drop for domestic long staple cotton.

In 2010, international market for high end products is recovering, such as high end T-shirt

and knitwear. The market demand for high account yarn is increasing too. Its increase

overtakes the price increase in middle and low account yarns. Given the insufficient supply of

high grade cotton, the price of long-staple cotton continues to increase. Current price of

long-staple cotton (Grade 137) has broken the record of RMB25000/ton.


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Figure 2, Long-Staple Cotton Price

14,500

16,500

18,500

20,500

22,500

24,500

26,500

2008-0

3-25

2008-0

4-29

2008-0

6-03

2008-0

7-08

2008-0

8-12

2008-0

9-23

2008-1

0-29

2008-1

2-02

2009-0

1-06

2009-0

2-17

2009-0

3-24

2009-0

4-28

2009-0

6-02

2009-0

7-08

2009-0

8-11

2009-0

9-15

2009-1

0-27

2009-1

2-01

2010-0

1-05

2010-0

2-09

2010-0

3-24

Unit: RMB yuan/MT

137 237 336

4 Prices of Cotton Yarn Will Continue to Increase

This month, quotation of domestic cotton yarn increases by RMB1000/ton. Short of labor still

remains a headache for factories, leading to low operation efficiency and insufficient supply.In some regions, it requires deposit to buy cotton yarn.

Due to prices increase, downstream cotton and cloth companies involuntarily increase prices.

Price of grey cloth has increased by RMB 0.3 to 0.5yuan.Cotton price has increased by 20

percent. Despite of prices increase, sales of grey cloth is still promising, leading to tight

supply.

Due to cotton prices increase, market supply of yarn becomes tight as well. Downstream

companies are active in buying and it is hoped to see the cotton price will continue to

increase.


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III. Cotton Growing Situation and Forecast in March

Growing Areas in 2010 is Hoped to Remain the Same as Last Year

Starting from March, cotton farmers in major producing regions are preparing for sowing

before spring comes. Jiangsu, Hubei, Hunan, Anhui and Southern Henan will enter the stage

of seeds breeding and bowl making at the end of March and the beginning of April. Hebei,

Shandong, Northern Henan, Gansu and Xinjiang will start sowing in the second half of April.

Due to the recent frequent cold spell and sandstorm, cotton seeds sowing have been delayed

in Northern cotton growing regions. Delay also occurs to bowl making in Southern cotton

producing regions.

At present, prices of seeds and fertilizer have increased slightly; meanwhile State continues to

raise the lowest buying price of grains and subsidy, which dampens cotton farmers

enthusiasm. It is hoped that the growing area will be about the same level as last year.

IV. Analysis of Cotton Import in February

1 Cotton Imports Record 221,000 MT, Up 2.86 Times

Chinas Customs data showed that total cotton imports in February were 221,000 MT, down

by 26.7% month-on-month and up 1.37 times year-on-year respectively. The average price of

imported cotton in January recorded $1721/MT, up 1.3% from last month and up 33.2%

year-on-year. Jan-Feb imports totaled 522,400 MT, up 2.08 times from the same period last

year.

2 India Still Remains as the Largest Cotton Import Origin Country, but Down by 44.7%

from Previous Month

Of the import origins, the Indias share still remains as the largest cotton import origin


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country, but the percentage dropped slightly. The U.S.s share has increased slightly. Cotton

from Uzbekistan remains stable. In February China imported 59,000 tons of cotton from the

United States, accounting for 26.6% of the total imports, up by 15.1 percentage points from

last month. China also imported 95,000 tons from India, accounting for 43% of the total

imports, down 44.7 percentage points from last month. China imported 27,000 tons from

Uzbekistan, accounting for 12.3% of the total, down by 18.5 percentage points from last

month. The share of other import origin countries is less than 3%.

3. Xinjiang Increases 741.8% from Last Month in Imports

In February, the major importing provinces were: Shandong, Jiangsu, Shanghai, Zhejiang and

Xinjiang. Shandong imported 86,600 tons of cotton, down 32.8% month-on-month. Jiangsu

and Shanghai imported 45,300 and 29,800 tons respectively, down by 26.3% and 17.8%

respectively from previous month. Xinjiang imported 10,700 tons of cotton, up by 741.8%

from previous month, which was 1272 tons.

4 Imports at Urumqi Customs Increased 2% from Previous Month

Uncombed cotton imports in February were mainly unloaded in Qingdao, Nanjing, Shanghai,

Tianjin and Urumchi. Imports in Qingdao registered 887,700 tons, down by 32.3% from

previous month. Imports in Shanghai and Nanjing registered as 60,600 and 27,000 tons

respectively, down by 14.6% and 40.1% respectively. Urumchi imported 14,200 tons of

cotton, up by 2% from previous month.

5 General Trade Became the Major Import Trade Mode

In February, imports of general trade have remained as the major import trade mode. The

percentage of imported cotton for processing and transshipment through bonded warehouse

remains stable. The percentage of cotton imports of entry/exit through bonded warehouse

dropped slightly. In February, imported cotton quantity of general trade was registered as

89,800 tons, down 7.3 percentage points month-on-month. Quantity of transshipment through


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bonded warehouse was recorded at 60,000 tons, down 32.3 percentage points. Imported

cotton of entry/exit through bonded warehouse recorded as 22,900 tons, down by 60

percentage points month-on-month. Imported cotton for processing recorded as 46,700MT,

down 19.3 percentage points from last month. The quantity of processing with supplied

cotton recorded at 1490 tons, 1.44 times more than previous month.

V. Analysis of Economic Situation of Textile Industry in February

1 Yarn Production Is 1.56286 Million Tons, Up 8.3% from the Same Period Last Year

Yarn production in February 2010 amounted to 1.6286 million MT, up 8% from the same

period last year, down 16.6% month-on-month. Jan-Feb yarn production totaled 3.582

million MT, up 24.9% from the same period last year. It is predicted that the yarn production

in March will still continue to increase.

2 Yarn Production in Jiangxi and Sichuan Increase Significantly

Yarn production in Shandong registered as 456,000 tons, accounting for 28.01% of the total

States output. Yarn production in Jiangsu and Henan registered as 276,000 tons and 249,000

tons, accounting for 16.93 and 15.30% respectively of the total output. Production in the

provinces of Zhejiang, Fujian and Hubei exceeded 100,000 MT. yarn production in other

provinces is less than 50,000 tons. Among the major producing provinces, output in Jiangsu,

Hebei, Hunan and Guangdong dropped year-on-year. Yarn output in Hebei dropped by

13.44% year-on-year. Yarn output in other provinces have increased year-on-year, while that

in Jiangxi, and Sichuan increased significantly by 44.91% and 34.72% respectively.

3 Cotton Cloth Production Rises 37.91%

Cotton cloth production in February was 2.91 billion M, up 37.91% year-on-year, which is

800 million M, and 15.2% month-on-month which is 121 million M. Jan-Feb production

totaled 5.44 billion M, up 43.54% year-on-year, which is 1.65 billion M. It is estimated that


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the output in March will increase significantly.

4 Cotton Cloth Exports Increases 58.25% Year-on-Year

China exported 459 million M cotton cloth in February, down 25.56% month-on-month or up

58.25% year-on-year. China imported 42 million M cotton cloth, down 24.93%

month-on-month or down 33.28% year-on-year.

Jan-Feb exports totaled 1.076 billion M, up 34.61% year-on-year, and imports totaled 98

million M, down by 15.03% year-on-year.

5. Textile and Apparel Exports Dropped by 18.8%

Chinas textile and apparel exports were valued at $152.638 billion in February 2010, down

18.8% from the previous month, and up 89.3% from the same period last year. Textile

exports were valued at $4.567 billion, up 78.2% year-on-year. Apparel exports were valued as

$8.071 billion, up 96.26% year-on-year.

VI. Analysis of Cotton Supply and Demand

1 Forecast Increase in Consumption and Imports in 2009/10

In March, BSNABC adjusts the forecast of cotton consumption in 20096/10 up to 9.896

million tons. The major reason lies in the promising sales. Due to the reduction in cotton

output, the forecast of imports has increased by two million tons. Ending cotton stocks areestimated at 2.039 million MT. The inventory to consumption ratio should drop to 20.6%,

which was 16.4 percentage points


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Attached Tables

Attached Table 1, Chinas Cotton Production Forecast, 2009

Unit: 1000Ha, Kg/ha, 1000MT

2008 Acreage 2009 Acreage 2008 yield 2009 yield 2008 Production 2009 Production

Yellow River

Shandong 888 867 1,172 1,062 1,041 921

Hebei 690 620 1,069 976 737 605

Henan 606 537 1,074 964 651 518

Shanxi 89 70 1,198 1,197 107 84

Shaanxi 85 67 1,183 1,200 101 86

Tianjin 69 60 1,199 1,250 83 75

Yangtze River

Hubei 543 460 945 1,044 513 481

Anhui 390 344 932 1,020 363 351

Jiangsu 300 252 1,085 1,016 326 256

Hunan 183 147 1,348 1,469 247 216

Jiangxi 67 61 1,681 1,500 112 91

Northwest

Xinjiang 1,719 1,365 2,051 1,980 3,526 2,703

Gansu 73 67 1,694 1,590 123 107

Total 5,754 4,950 1,389 1,313 7,992 6,500

Date of Forecast: March 2010

Attached Table 2, China Uncombed Cotton Import Volume by Original Country, February 2010

(products of heading No.52010000 in China customs tariff)

Unit: MT

Feb Year Ago YOY (%) Jan ~ Feb, 2010 Jan ~ Feb, 2009 YOY (%)

Total 221,025.74 93,072.35 137.48 522,365.19 171,048.18 205.39

India 95,099.83 8,994.58 957.30 267,097.61 14,794.06 1,705.44

United States 58,814.15 48,716.01 20.73 109,893.75 108,432.28 1.35

Uzbekstan 27,205.90 23,132.46 17.61 60,580.05 23,319.03 159.79

Burkina Faso 5,839.18 297.54 1,862.48 10,972.78 493.97 2,121.37Cameroon 5,108.27 299.89 1,603.40 9,084.38 1,174.70 673.33

Brazil 4,336.18 5,522.95 -21.49 9,289.27 11,600.30 -19.92

Australia 3,075.75 1,964.72 56.55 9,494.51 2,424.71 291.57

Malawi 2,666.14 - 3,357.97 -

Pakistan 2,615.45 - 6,480.30 -

Mexico 2,611.33 1,678.80 55.55 8,302.00 2,675.44 210.30

Turkmenistan 2,423.67 - 3,558.43 -

Egypt 1,722.06 318.49 440.69 3,777.42 757.09 398.94

Zimbabwe 1,501.75 978.65 53.45 1,997.77 978.65 104.14


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Senegal 1,304.89 - 2,460.63 -

Cote d.lvoir 1,160.36 - 1,701.95 -

Greece 1,138.36 494.01 130.44 1,440.26 993.76 44.93

Togo 1,136.01 - 1,635.59 -

Sudan 920.18 - 1,177.18 -

Mali 499.65 60.00 732.81 1,640.40 559.99 192.93

Tadzhikistan 348.81 - 850.90 -

Benin 298.44 - 593.88 -

Ethiopia 254.38 - 254.38 -

Zambia 242.17 - 811.19 25.22 3,116.09

Chad 199.87 274.64 -27.23 399.86 474.36 -15.70

S.Africa 174.19 - 564.65 -

Yemen 107.06 - 107.06 -

Syrian Arab Rep. 97.44 99.31 -1.89 97.44 99.31 -1.89

Uganda 79.68 - 139.53 -Turkey 44.60 - 44.60 -

Attached Table 3, China Uncombed Cotton Import Volume by Province, February 2010


Unit: MT


Total 221,025.74 93,072.35 137.48 522,365.19 171,048.18 205.39

Shandong 86,596.02 35,044.17 147.11 215,469.54 62,323.76 245.73Jiangsu 45,320.83 16,738.49 170.76 106,781.97 27,143.97 293.39

Shanghai 29,798.87 12,311.36 142.04 66,031.84 29,886.33 120.94

Xinjiang 10,707.15 48.00 22,205.16 11,979.04 2,239.56 434.88

Zhejiang 9,242.56 4,040.29 128.76 23,372.67 7,885.96 196.38

Guangdong 6,324.21 402.26 1,472.18 14,412.69 2,435.07 491.88

Beijing 6,232.74 12,152.62 -48.71 17,332.72 18,467.89 -6.15

Hebei 6,032.68 1,675.30 260.10 12,026.28 2,795.96 330.13

Hubei 6,010.65 2,677.06 124.52 11,072.15 4,321.99 156.18

Tianjin 5,774.32 1,828.17 215.85 18,970.70 3,781.48 401.67

Anhui 3,233.76 - 9,143.34 -

Henan 1,586.34 1,237.87 28.15 7,832.60 3,155.72 148.20

Guangxi 1,346.41 340.07 295.92 1,789.25 615.07 190.90

Liaoning 1,301.35 2,638.92 -50.69 1,497.79 2,927.53 -48.84

Chongqing 988.96 - 988.96 -

Jilin 331.86 576.52 -42.44 626.52 732.96 -14.52

Shanxi 197.03 - 197.03 -


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Attached Table 4, China Uncombed Cotton Import Volume by Customs, February 2010


Unit: MT


Total 221,025.74 93,072.35 137.48 522,365.19 171,048.18 205.39

Qingdao 88,712.94 35,590.25 149.26 219,838.31 62,968.25 249.13

Shanghai 60,583.39 24,804.27 144.25 131,480.64 55,692.29 136.08

Nanjing 26,999.67 8,881.33 204.00 72,046.24 13,474.61 434.68

Urumqi 14,239.31 9,587.27 48.52 28,200.09 11,778.83 139.41

Tianjin 14,052.77 5,381.11 161.15 33,366.10 9,686.88 244.45

Wuhan 3,240.93 1,777.41 82.34 6,717.21 3,222.34 108.46

Huangpu 2,264.90 340.07 566.01 4,646.30 1,524.30 204.82

Hefei 2,241.48 - 7,327.42 -

Shantou 1,907.90 - 3,004.84 -

Dalian 1,633.21 3,215.44 -49.21 2,124.31 3,660.50 -41.97Jiangmen 1,609.19 - 3,595.35 -

Gongbei 997.48 243.66 309.38 997.48 346.39 187.97

Zhanjiang 891.16 158.60 461.89 3,457.99 1,654.20 109.04

zhengzhou 865.93 - 1,865.93 587.64 217.53

Ningbo 785.50 2,029.59 -61.30 1,711.19 4,889.68 -65.00

Attached Table 5, China Cotton Import Volume by Mode, February 2010


Unit: MT

Feb Year Ago YOY (%) Jan ~ Feb, 2010 Jan ~ Feb, 2009 YOY (%)Total 221,026 93,072 137.48 522,365 171,048 205.39

General Trade 89,816 37,388 140.23 186,649 69,377 169.03

Bonded Area Transit 60,088 20,264 196.52 148,847 41,183 261.43

Processing with Imported Material 46,689 25,332 84.30 104,513 45,975 127.32

Bonded Warehouse Entry and Exit 22,949 9,929 131.13 80,262 14,080 470.04

Processing with Customer's Material 1,483 159 835.29 2,095 433 384.34

Attached Table 6, China Yarn Production by Province, February 2010

Unit: 000MT


Total 1,628.6 1,503.6 8.3 3,582.1 2,868.4 24.9

Shandong 456.2 453.2 0.7 947.7 848.4 11.7

Jiangsu 275.6 280.5 -1.7 671.5 527.5 27.3

Henan 249.2 194.1 28.4 534.1 390.3 36.8

Zhejiang 131.3 110.8 18.5 297.0 194.8 52.5

Fujian 108.3 90.4 19.8 235.1 179.7 30.8

Hubei 105.7 94.0 12.4 221.1 183.5 20.5


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Sichuan 46.6 34.6 34.7 98.4 64.9 51.6

Hebei 41.9 48.4 -13.4 104.4 96.7 8.0

Jiangxi 41.2 28.5 44.6 95.5 63.8 49.7

Hunan 38.0 38.6 -1.6 88.1 72.7 21.2

Anhui 32.3 31.1 3.9 61.8 56.7 9.0

Guangdong 24.9 26.6 -6.4 50.7 46.6 8.8

Xinjiang 23.9 18.8 27.1 52.3 38.6 35.5

Shaanxi 14.8 14.0 5.7 35.1 27.6 27.2

Liaoning 8.9 12.8 -30.5 20.2 23.1 -12.6

Chongqing 8.5 5.4 57.4 19.3 10.8 78.7

Guangxi 6.5 6.1 6.6 14.6 11.3 29.2

Shanghai 2.9 3.2 -9.4 8.1 6.6 22.7

Jilin 2.8 2.4 16.7 6.6 5.2 26.9

Inner Mongolia 2.7 1.0 170.0 3.8 2.2 72.7

Tianjin 2.2 2.8 -21.4 5.4 6.4 -15.6Shanxi 1.7 2.8 -39.3 5.0 4.5 11.1

Heilongjiang 1.1 1.3 -15.4 2.3 2.3 0.0

Guizhou 0.7 1.0 -30.0 1.9 1.9 0.0

Yunnan 0.3 0.2 50.0 0.7 0.7 0.0

Beijing 0.2 0.4 -50.0 0.5 0.8 -37.5

Qinghai 0.2 0.3 -33.3 0.5 0.3 66.7

Gansu 0.1 0.3 -66.7 0.4 0.5 -20.0

Attached Table 7, China Textile and Apparel Export Value by Month, 20092010Unit: million US$

Textile and Apparel Export YOY(%) Textile Export YOY(%) Apparel Export YOY(%)

200901 15,231 -0.68 4,724 -12.40 10,507 5.68

200902 6,675 -35.12 2,563 -32.45 4,112 -36.69

200903 12,164 2.85 4,732 -6.49 7,432 9.84

200904 12,493 -12.55 5,121 -14.40 7,372 -11.22

200905 12,306 -14.75 4,895 -16.27 7,411 -13.71

200906 13,948 -9.96 4,911 -12.59 9,037 -8.46

200907 16,373 -12.37 5,323 -13.54 11,050 -11.80

200908 15,696 -15.57 5,162 -14.70 10,534 -16.00

200909 16,752 -6.98 5,670 -4.69 11,081 -8.12

200910 14,651 -12.51 5,294 -4.78 9,357 -16.35

200911 13,959 -9.53 5,366 7.42 8,593 -17.64

200912 16,787 4.49 6,216 25.10 10,571 -4.75

201001 15,568 2.21 5,581 18.15 9,986 -4.95

201002 12,638 89.34 4,567 78.19 8,071 96.29


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Attached Table 8, China Cotton Supply and Demand, 2005/062009/10Unit: 000MT

2005/06 2006/07 2007/08 2008/09 2009/10

Beginning Stocks 3,190 3,991 3,608 3,239 3,445

Production 5,714 7,756 8,024 7,992 6,500

Domestic supply 8,904 11,747 11,631 11,231 9,945

Imports 4,201 2,306 2,511 1,523 2,000

Total supply 13,105 14,053 14,142 12,754 11,945

Domestic Consumption 9,106 10,426 10,890 9,290 9,896

Exports 8 19 14 19 10

Total Consumption 9,114 10,445 10,904 9,309 9,906

Ending Stocks 3,991 3,608 3,239 3,445 2,039

Stocks/Use Ratio 43.8 34.5 29.7 37.0 20.6

Date of Forecast: March 2010; Season Beginning August 1

Attached Table 9, Global Cotton Supply and Demand, 2005/062009/10Unit: 000MT

2005/06 2006/07 2007/08 2008/09 Feb

2009/10

Mar

2009/10

Production 25,407 26,552 26,107 23,395 22,370 22,261

Domestic Consumption 25,404 26,937 26,773 23,973 25,154 25,191

Imports 9,747 8,286 8,490 6,545 7,351 7,487

Exports 9,710 8,114 8,376 6,582 7,353 7,468

Ending Stocks 13,580 13,746 13,642 13,590 11,339 11,192

Resources: USDA, March 2010. Season Beginning August 1

Attached Table 10, Global Cotton Supply and Demand, 2005/062010/11Unit: 000MT

2005/06 2006/07 2007/08 2008/09 Feb

2009/10

Mar

2009/10

Feb

2010/11

Mar

2010/11

Beginning Stocks 11,611 12,271 12,601 12,029 12,280 12,330 10,530 10,460

Production 25,646 26,766 26,037 23,413 22,180 22,220 24,120 24,370

Domestic Consumption 24,985 26,434 26,484 23,282 23,930 24,090 24,530 24,760

Imports 9,613 8,187 8,392 6,606 7,130 7,300 7,350 7,540

Exports 9,737 8,103 8,361 6,562 7,130 7,300 7,350 7,540

Ending Stocks 12,271 12,601 12,029 12,281 10,530 10,460 10,110 10,070

Cotlook A Index 56.1 59.1 72.9 61.2 72.0 74.0

Resources: ICAC, March 2010. Season Beginning August 1


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Attached Figures

Attached Fig. 1, China Uncombed Cotton Import Volume by Month, 2006-2010

-

100,000

200,000

300,000

400,000

500,000

600,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Unit:MT

2006 2007 2008 2009 2010

Attached Fig. 2, China Uncombed Cotton Import Price (CIF)

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

2005/02

2005/05

2005/08

2005/11

2006/02

2006/05

2006/08

2006/11

2007/02

2007/05

2007/08

2007/11

2008/02

2008/05

2008/08

2008/11

2009/02

2009/05

2009/08

2009/11

2010/02

/


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Page 17 of 22

Attached Fig. 3, China Uncombed Cotton Imports by Original Country, February 2010

United States

26.6%

Burkina Faso

2.6%

Uzbekstan

12.3%

Brazil

2.0% Others

7.4%Pakistan

1.2%Australia

1.4%

Malawi

1.2%

India

43.0%

Cameroon

2.3%

Attached Fig. 4, China Uncombed Cotton Imports by Province, February 2010

Jiangsu

20.5%

Shanghai

13.5%

Guangdong

2.9%

Xinjiang

4.8%

Beijing

2.8%

Hebei

2.7% Shandong

39.2%

Zhejiang

4.2%

Others

4.1%

Tianjin2.6%Hubei

2.7%


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Page 18 of 22

Attached Fig. 5, China Uncombed Cotton Imports by Customs, 2008~2010

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

08/01

08/02

08/03

08/04

08/05

08/06

08/07

08/08

08/09

08/10

08/11

08/12

09/01

09/02

09/03

09/04

09/05

09/06

09/07

09/08

09/09

09/10

09/11

09/12

10/01

10/02

Uint: MT

Qingdao Shanghai Nanjing Tianjin Urumqi Others

Attached Fig. 6, China Uncombed Cotton Imports by Mode, February 2010

Processing with

Customer's Material

0.7%

Bonded Area Transit27.2%

General Trade

40.6%Processing with Imported

Material

21.1%

Bonded Warehouse Entryand Exit

10.4%


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Page 19 of 22

Attached Fig. 7, China Yarn Production by Month, 2007-2010

0

500

1,000

1,500

2,000

2,500

1 2 3 4 5 6 7 8 9 10 11 12

Unit: 000 MT

2007 2008 2009 2010

Attached Fig. 8, Yarn Production of Major Producing Regions, February 2010

000 MT

0

50

100

150

200

250

300

350

400

450

500

Shandong

Jiangsu

Henan

Zhejiang

Fujian

Hubei

Sichuan

Hebei

Jiangxi

Hunan

Anhui

Guangdong

%

-20

-10

0

10

20

30

40

50

This Month YOY()


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Page 20 of 22

Attached Fig. 9, Yarn Production of Major Producing Regions, Jan-Feb. 2010

000 MT

0

100

200

300

400

500

600

700

800

900

1,000

Shandon

g

Jiangs

u

Hena

n

Zhejian

g

Fujia

n

Hubei

Hebei

Sichua

n

Jiangxi

Huna

n

Anhu

i

Xinjian

g

Guangdon

g

%

0

10

20

30

40

50

60

Jan.-Feb., 2010 YOY(%)

Attached Fig. 10, China Cotton Cloth Production by Month, 2007-2010

0

5

10

15

20

25

30

35


Unit: 00 million meter

2007 2008 2009 2010


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Page 21 of 22

Attached Fig. 11, China Cotton Cloth Export Volume by Month, 2007-2010

0

100

200

300

400

500

600

700

800


Unit: million meter

2007 2008 2009 2010

Attached Fig. 12, China Textile and Apparel Export Value, 2006-2010

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2006.0

2

2006.0

4

2006.0

6

2006.0

8

2006.1

0

2006.1

2

2007.0

2

2007.0

4

2007.0

6

2007.0

8

2007.1

0

2007.1

2

2008.0

2

2008.0

4

2008.0

6

2008.0

8

2008.1

0

2008.1

2

2009.0

2

2009.0

4

2009.0

6

2009.0

8

2009.1

0

2009.1

2

2010.0

2

million US$ %

-60

-40

-20

0

20

40

60

80

100

Export Value YOY(%)


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Page 22 of 22

Attached Fig. 13, Cotton Prices in CNCE, ZCE and ICE, 2008-2010RMB yuan/MT

10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000

18,000

2008-03-11

2008-04-09

2008-05-09

2008-06-06

2008-07-07

2008-08-06

2008-09-03

2008-10-09

2008-11-06

2008-12-04

2009-01-05

2009-02-09

2009-03-09

2009-04-07

2009-05-06

2009-06-05

2009-07-03

2009-07-31

2009-08-28

2009-09-25

2009-11-02

2009-11-30

2009-12-28

2010-01-26

2010-02-26

2010-03-26

USC/lb

30

40

50

60

70

80

90

CNCE nearby ZCE nearby ICE nearby

Attached Fig. 14, Exchange Rate USD to RMB of Imports & Exports

6.8262

6.8200

6.8250

6.8300

6.8350

6.8400

6.8450

6.8500

200810 200812 200902 200904 200906 200908 200910 200912 201002 201004

China Monthly Cotton Report

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Transcript of China Monthly Cotton Report