Japanese cotton business shows signs of recovery
Due to the economic situation and the aftermath of the disastrous events the Japanese cotton business had suffered and shows now some signs of recovery according to the Japan Cotton Statistics of the Japan Cotton Traders’ Association
In 2011 the Japanese textile industry contracted and its spinning capacity decreased in 2010 to around one million spindles in 2010 whereas Japan had 11.76 million spindles installed in 1972. The low figure for 2010 reflects also that Japanese spinners have relocated their production to other countries, among China or have diversified into the production of totally different products. In 2010 the cotton yarn production declined 68 % to 45000 metric tons whereas in 2001 the yarn production amounted to 140000 metric tons.
In 2010 also the import of cotton yarn, fabrics and made up goods fell by 17% to 685000 metric tons and this compares to 823000 metric tons in 2001.
Improved cotton imports
Japanese cotton imports recovered in 2010/11 by 25 % to 377400 bales thus ending the decreasing period of recent years. It is noteworthy to mention that the highest imports date back to 1972/73 with 3.96 million bales.
The imports 2010/11 came from the following countries: USA 190000 bales (+38, mainly Texan crop), Brazil 67000 bales (+26 %), Greece 12000 bales (+ 50 %) and Egypt 6000 bales (+ 57 %) whereas less quantity (for the fourth consecutive season) came from Australia (80000 bales or -2 %), however this provenance together with USA and Brazil account for 90% of total cotton imports and it is expected that this tendency will be foregoing.
Higher Cotton mill consumption
During the season 2010/11 Japanese mill consumption recovered by 16 % to 375500 bales based on increased demand and low stocks in the season’s first half but shrinking demand after cotton price hikes in the second half and therefore some spinning mills increased the share of synthetic fibres into their cotton blend. The highest Japanese cotton mill consumption dates back to 1973/74 with 3.8 million bales.