Experts say China will sell 2.5 Million t from cotton reserve in 2017

Experts say China will sell 2.5 Million t from cotton reserve in 2017

In 2016, China’s success when selling cotton from its strategic reserve came as a mild surprise to many, who feared the quality of the fibre might have suffered extensive damage during years spent in warehouses. But the auctions found plenty of buyers and China was able to reduce its stocks by 2.5 million tons, with all fibre offered finding a buyer. It even extended the selling period by one month, due to strong demand from mills

Based on that success, experts predict China will auction and sell the same amount next year, putting another dent in the size of the world’s largest cotton reserve. And, with production expected to decrease again in 2016/17 to about 4.9 million tons – and demand expected to top 7.7 million tons – many in the industry see those stocks being drawn down further in the coming year, especially since China won’t raise import quotas for the coming season, which will remain capped at this year’s limit of 894000 tons.

https://www.cottonyearbook.com


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