National cotton industry stocks continue to decrease

According to the results of a sample survey conducted by the National Cotton Market Inspection System, as of September 7, the national cotton industry stock was approximately 829,800 tons, which continued to decrease month-on-month and year-on-year, and was 11.3% lower than the average of the past three years. This is also related to the postponement of restocking by companies this year.

At the same time, the monthly sales rate of yarns and cloths for companies was 100.9% and 92.5%, respectively, both in the quarter and year-on-year. The reduction of inventory and the increase in the sales volume of finished products also drove the willingness of companies to make up the inventory.

The ICAC issued its latest report on September 1 stating that after a 4% decline in 2010/2011, it is expected that the global textile cotton volume will grow slowly to 24.7 million tons in 2011/2012, 1.5% higher than the previous year. . This is mainly due to the increase in the supply of cotton, but it will also be subject to the Khmer price and competition from chemical fiber.

According to the yarn and cloth production data released by the National Bureau of Statistics, the output of yarn and cotton in August decreased by 2.07% and 2.99% respectively from July, but the output of single month slowed down obviously, and the monthly output increased by 10.73 over the previous month. % and 6.94%, the growth rate has shown signs of stabilization and recovery.

As the inventory of finished products is gradually digested and the cotton price and production profits are stabilized, the gauze factory will gradually return to work, and the amount of cotton used will then show a recovery growth.

At the same time, the ICAC also suggested that the risk of a second bottoming in the world economy may reduce this expectation, which also means that due to the global economic contraction, the growth in cotton use may be very slow.