As China grapples with its massive cotton surplus, Bangladesh and Vietnam will take its place as the world’s leading cotton importers, says the International Cotton Advisory Committee. China will remain the largest consumer, using nearly three of every 10 tonnes of cotton that goes through cotton mills in 2016/17.
Low prices for polyester, an alternative to cotton in the textile industry, and weak economic growth around the world will hold cotton consumption at 23.7 million tonnes, said ICAC in a monthly report. The intergovernmental body said mill use in China would drop 5 percent to 6.7 million tonnes, offset by increases in other countries, including India, the No. 2 cotton consumer and largest cotton grower.
Bangladesh and Vietnam will emerge as the largest cotton importers, accounting for 34 percent of world trade. “Imports by China are forecast to fall by 12 percent to 960,000 tonnes in 2016/17 due to the government’s desire to reduce its cotton reserve stock and restrict imports,” said ICAC. China sold 450,000 tonnes from the stockpile last month, reducing it to 10.6 million tonnes, equal to a 19-month supply.