Cotton Price to Remain StableCotton prices on China's domestic market is expected to remain stable in the coming months this year, experts predict.The average cotton price will probably stand at more than 8,000 yuan (US$964) per ton in the latter half of this year, 2, 000 yuan (US$241.84) higher than last year's level, sources with the State Administration of Textile Industry said Thursday. China plans to cap its cotton planting area to around 3.5 million hectares this year. However, the cotton output will be less due to bad weather. There will be no cotton supply shortage because the stockpile of cotton at the beginning of the year was quite large, an official with the administration said. Experts said the world's cotton production, consumption and trade will increase while the stockpile may decline in the coming months. "But the supply and demand on the whole will not change fundamentally and cotton prices will fluctuate between 58-61 cents per pound," they added. China's purchasing of cotton was pushed up to 390-420 yuan (US$47.16-50.79) per 50 kilograms earlier this year because of recovering exports and domestic sales. Experts also attributed the price hike to the temporary lack of cotton reserves and some cotton sellers. They noted that demand for cotton may increase sometime later this year, as oil and tow are expected to become more expensive. |
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