Issue
179: April 2016

Product Overview
Buy this Issue now Subscribe Download brochure (PDF) Download price list (PDF)
Price list download
Please choose your preferred currency:
|
Request sample issue
View list of reports in other issues
Multi Report Package |
We also offer a flexible subscription product,
the Multi Report Package,
which allows you to select your own choice of reports from our full range,
to suit your own budget. Click here for full details.
|
|
 |
Editorial: Will sales from the Chinese cotton stockpile drive down world prices? |
published in Issue 179, April 2016
|
The global textile industry faces a period of uncertainty as China starts to auction off its 11 mn ton stockpile of cotton fibre. The stockpile equates to about 46% of the cotton fibre expected to be consumed globally in the 2015/16 season and about 151% of the amount expected to be consumed in China alone. Despite the magnitude of the stockpile, its presence has not yet had a dramatic effect on global prices as it has not been available to the world market. But this could change once the Chinese authorities start to sell it off. The impact on global prices will depend on the speed with which it is auctioned off and the prices obtained. Much of the fibre is of low quality and will therefore be hard to sell at market prices. Moreover, the quality of the stockpile is deteriorating over time. The stockpile has built up because of the Chinese government's former policy of buying cotton fibre to keep the price high and encourage farmers to plant the crop. The government had hoped to profit from buying cotton at low prices when the market was weak and selling it at higher prices when it was stronger. But when it auctioned cotton during July-August 2015 it lost an estimated 26% on its original investment. Furthermore, it wanted to sell 1 mn tons of cotton but sold only 63,413 tons because the asking price was too high. Since then global prices have dropped. In the forthcoming auctions, the government plans to sell at least 2 mn tons. One factor on its side is that the cotton crop is likely to fall short of demand in the 2015/16 season, and it may attempt to sell more than 2 mn tons if there is a shortfall. In this report, Robin Anson discusses the possible effects of the auctions on the global cotton market and draws comparisons between the current situation in the cotton market with the Australian wool crisis of the 1970s-1990s.
Six times a year, Textile Outlook International provides up to 200 pages of intelligence, expert analysis and insight on the global textile and clothing industry. |  | What's in it? Each issue provides an authoritative source of information on key industry topics, including: circularity; cotton; environmental sustainability; fibre prices; innovation; production and consumption forecasts; imports and exports; industry giants and emerging brands; international trade fairs; key geographical markets; recommerce; retail; supply chains; textile and clothing trade; textile machinery; trade and production trends; world markets; and yarn and fabric manufacturing. A single issue of Textile Outlook International includes: an editorial think-piece on a topical issue from an industry expert a report on textile and apparel trade and production trends a round-up of the latest international trade fairs a feature on textile and clothing imports and exports or fibre prices, production and consumption a report on a key geographical market insight and analysis of a key market leader or fast-growing start-up An annual subscription to Textile Outlook International is a cost-effective way to keep informed about trends and developments in the global textile and clothing industry. Subscriptions are available in printed and/or digital formats. Printed and digital subscribers receive each issue in printed format in addition to a digital PDF file, which is available immediately on publication. Like all Textiles Intelligence publications, Textile Outlook International is a reliable source of independently sourced business information, and it does not carry advertising.
This is what our customers say: |
"Ten years ago while working in the UK, I discovered Textile Outlook International. Since then, while working in the United States and now in Italy, I have relied upon this publication to support many of my strategic sourcing decisions. Textiles Intelligence has created a world-class publication that I will continue to depend upon in my work with the global textile industry." |
(Peter G Allison; Vice President, Mediterranean Sourcing; Gap Inc.) |
|
|
 |