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Declining consumer confidence will slow cotton trade: ICAC

02 Nov '19

2 min read

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Both global cotton consumption and trade are expected to decline in 2019-20 due to slowing mill use and cotton imports in China—largely the result of the ongoing economic burden of the US-Sino trade war. Current projections estimate production in the coming year at 26.7 million tonnes, consumption at 26.2 million tonnes and total trade at 8.8 million tonnes.

India is expected to lead the world in overall cotton production at 6 million tonnes, despite the country's low yields of 440 kg/ha, among the world's lowest and considerably below the global average of 780 kg/ha, the International Cotton Advisory Committee (ICAC) said in its 'November 2019 Cotton This Month' report.

China is projected to be the world's top consumer at 8.05 million tonnes despite that figure being a 2 per cent decrease from 2018-19. Both Mexico and Pakistan are expected to increase their imports, however, by 48 per cent (to 141,000 tonnes) and 8 per cent (to 711,000 tonnes), respectively.

With production expected to grow by 1 million tonnes, and consumption projected to remain flat, cotton prices will be under heavy pressure throughout the year. ICAC's current price projection for the year-end average of the Cotlook A Index has been revised to 75.5 cents per pound this month.

Fibre2Fashion News Desk (RKS)

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