China: Cotton and Products Update
China’s addition of 0.8 MMT of cotton import quotas this year is expected to push imports up to 1.5 million metric tons (MMT) in marketing year (MY) 18/19. With imports from the U.S. constrained by the additional 25 percent tariff applied by China beginning in July 2018, importers will seek alternative cotton supplies from Brazil and Australia. China’s cotton production is forecast to remain virtually unchanged in MY18/19 at 6 MMT. Maintained by steady economic growth, cotton use will be stable at 9 MMT in MY18/19. With increased sales from the state reserves, cotton stocks are forecast to fall significantly by the end of MY18/19, down to 6.7 MMT from an estimated 10 MMT at the beginning of MY17/18.
