China News Service, Beijing, August 24. The China Cotton Association issued a monthly report on China's cotton situation on the 24th (July 2021): Textile demand is strong, and cotton prices at home and abroad have risen sharply.

According to the China Cotton Association, in July 2021, China implemented strong epidemic prevention and control measures, production and operation activities were further resumed, textile production and sales continued to improve steadily, corporate orders were sufficient, operating rates remained at a high level, and sales of finished products were smooth. Yarn profits are relatively high, which is rare in the past 10 years. Cotton demand continues to be strong and shows no signs of slowing down.

  From the supply side, according to the China Cotton Association survey, the national cotton output in 2021 is expected to be about 5,763,100 tons, a decrease of 2.71% year-on-year; in July, the state cotton storage round shipped about 191,100 tons, with a transaction rate of 100%. During the same period, domestic and foreign cotton prices have risen sharply, domestic futures and spot prices have reached their highest points since 2015, and international cotton prices have hit a new high since 2013.

  In addition, in July, China’s cotton imports amounted to 140,000 tons, a year-on-year decrease of 3%; from January to July, a total of 1.69 million tons were imported, a year-on-year increase of 61.4%.

  In July, the weather conditions in most cotton areas across the country were more suitable for cotton growth. The climate in most cotton areas of the Yangtze River Basin is stable and normal, and the overall growth of cotton is good, and the yield is expected to be higher than last year.

  China Cotton Association predicts that cotton consumption in 2020/21 will be 8.426 million tons, an increase of 11.33% year-on-year; imports will be 2.8 million tons, an increase of 75% year-on-year, and exports will be 28,500 tons, an increase of 11.33% year-on-year.