China May Increase Cotton Import Quota And Sell Reserve Cotton.

China is the largest cotton importing country, an analyst said. China may increase the import quota of cotton and sell more government stocks to solve the contradiction of insufficient supply.

Mr Tung, assistant manager of Jinshi Futures Limited, said that China could increase its import volume of 1 million tons of cotton before the new flower entered the market in -9 August, while selling 600 thousand tons from the government stock.

Dong said that the supply of cotton in China is still in short supply, and domestic supply does not seem to meet the increasing consumption.

According to the US Department of agriculture, China's cotton consumption is about 10 million 340 thousand tons in 2009-10 years, and its output has dropped to 7 million 100 thousand tons during the same period.

The delay in planting time this spring also poses a threat to the output of 2010-11 years.

Dong said that the growth of cotton yarn prices this year is faster than that of cotton, and the demand for raw materials for textile mills is expanding and profits are increasing.

He said that in July -9, China needed to import 2 million 700 thousand tons of cotton and 900 thousand tons per month.

As the cotton planting time in Xinjiang is postponed in China's largest cotton producing area, the time of new cotton listing may also be postponed.

The nationwide cotton picking work may be postponed to October, 20 days later than normal time.

The Chinese Cotton Association issued a statement on its website today saying that the government is formulating policies to meet the needs of the textile industry and ensure market stability.