ICAC: Global cotton consumption to rise
The International Cotton Advisory Committee, Washington, has announced recently it expects global cotton consumption to increase in the coming year.
The International Cotton Advisory Committee, Washington, has announced recently it expects global cotton consumption to increase in the coming year. Recovery continues in cotton production for 2017-2018, according to the ICAC, which projects an 11 per cent growth to about 25.4 million tons due to increased area put into production. Production in just the United States for the current season is expected to increase 25 per cent to 4.7 million tons.
India, according to the report, will remain the worldâ€™s largest cotton producer, with 2017-2018 production expected to reach 6.2 million tons. China will come in at No. 2, with 5.2 million tons of production. Pakistan is predicted to increase 11.5 percent, to 1.9 million tons, while Turkey is predicted to increase its production 18 pe rcent to 829,000 tons. Other major cotton countries are expected to have positive growth attributed to increased production area and harvested yields.
Meanwhile, international cotton prices have moved upward over the last few months that the season has been underway, according to the ICAC. â€œFrom the season low of 77 cents per pound at the start of season, prices are at a season high at the end of this calendar year up to 88 cents per pound,â€ the report stated. â€œThe current season average of 80 cents per pound is lower than the 2016/17 average of 83 cents per pound.â€
Global consumption, according to the ICAC, is expected to grow with a lower international price from the previous season and the rising price of competing fibres. After stagnating in 2016-2017, global cotton demand is expected to increase 3 percent in 2017-2018 to 25.2 million tons. Chinese mill use is expected to remain stable at 8.1 million tons, while India and Pakistan are expected to increase 3 per cent and 4 per cent respectively, according to the report. Consumption in Vietnam is expected to grow 12 per cent to 1.3 million tons. Moderate growth of 2 to 3 per cent is expected for other major consuming countries of Bangladesh, Turkey and the US, according to the report.