Chicago: Global cotton consumption and exports will fall in the year through July 2009 on slowing textile demand, the International Cotton Advisory Committee said.
Use of the fibre in the current marketing year will slip 3.3% from a year earlier to 25.5 million tonnes (mt), 1.9% lower than forecast a month ago, the committee said on Tuesday in an emailed report.
Exports will decline 6.5% to 7.8mt, 7.1% lower than forecast on 1 October, according to the group. The report said mill use will drop 4% to 10.5mt in mainland China, the world’s largest consumer.
China’s consumption may fall because of “rising costs of production, the strength of the yuan against the US dollar and slowing demand” from textile importers, the committee said.
Global production may slump 5.9% to 24.7mt on smaller crops in the US, the biggest exporter, as well as in Turkey, Brazil and Egypt, the committee forecast.
Output increases are forecast for India, Pakistan and Australia.