Business news : China plans large sell-out of its cotton reserves

Bloomberg

Textilwirtschaft, the German trade publication for the apparel industry, reports that the Chinese government intends to sell off its cotton reserves. It is said that China has some 13 million tons of cotton in stock, representing about 40 percent of last year’s annual production worldwide.

The country wants to sell its cotton for 18 yuan renminbi (€2.20) per ton. This is well above the current average of €0.78 per ton. The price is, however, 40 percent lower than the average amount that China recently spent per ton. The big question here is whether the market will accept the offer since cotton from India is currently cheaper and of a better quality. Last year, Beijing acquired some 85 percent of Chinese domestic cotton production.

Through Ispo Newsblog.