China’s cotton yield continued to drop in 2016 as the growing area of the fiber decreased, official data showed Tuesday [20 December 2016]. Yields of cotton decreased 260,000 tonnes to 5.34 million tonnes, a 4.6 percent decrease year on year, according to the National Bureau of Statistics (NBS)…Full Article: ECNS.cn Dec 2016
- From 2015 to 2016, Xinjiang Region’s cotton output as a percentage of China’s total output increased from 62.5% to 67.3% (~3.6 million MTs in 2016). During the same time period, China’s cotton cultivation area fell 11.1%, or by 420,500 hectares, to 3.37 million ha.
- In 2012, China’s cotton output peaked at 6.84 million MTs.
- In November 2016, China Grain Reserves (Sinograin) and CNCRC merged, with Sinograin subsuming CNCRC within its corporate structure.
- In July 2016, COFCO and Chinatex merged (both state-owned companies), with COFCO subsuming Chinatex within its corporate structure. As a result of the merger (Chinatex will be a subsidiary of COFCO), COFCO Group will have an 18% market share of China’s edible oil processing sector, and a 10% of the world’s cotton crop market.
- From 2014 to 2015, Xinjiang’s share of China’s total cotton production increased from 59.5% to 62.5% (~3.5 million MTs).
- In October 2015, China delegated its quota review and approval process for cotton processing to provincial authorities in order to streamline the country’s cotton processing industry and avoid excessive investment/overcapacity.
- In September 2015, the President of the China National Textile & Apparel Council (CNTAC) stated China needs 3.5 million MTs of “high quality” cotton.
- From July to August 2015, according to the NDRC, China attempted to auction 330,000 MTs of 2011’s cotton crop at CNY 13,200 (~US$2,125) per MT, 470,000 MTs of 2012’s crop at CNY 14,200 (~US$2,286) per MT, and 200,000 MTs of 2012’s imports (not domestic) at CNY 15,500 (~US$2,495) per MT.
- In June 2015, China’s NDRC announced plans to sell off the country’s cotton stockpile (~10 million MTs as of mid-2105). According to an NDRC official, it will take China several years to sell and consume its current cotton stockpile. During the same month, China’s State Council issued measures to promote Xinjiang’s textile and garment industry in order to boost local employment and exports.
- In 2014, Chinese cotton reserves reached 11 million MTs, equal to roughly half of global cotton trade volumes. Additionally, Xinjiang Region accounted for 60% or 3.6 million MTs of China’s total cotton output.
- In September 2014, the Chinese government stated it plans to raise the number of those employed in Xinjiang’s cotton industry from 200,000 to 1 million by 2020.
- In July 2014, Xinjiang announced plans to spend approximately CNY 20 billion yuan ($3.2 billion) on boosting the textile industry in the southwestern Xinjiang city of Aksu (near Kyrgyzstan).
- From 2012 to 2013, China’s cotton output declined from 6.8 million MTs to 6.2 million MTs. In 2013, Xinjiang accounted 56% or 3.5 million MTs of Chinese cotton production. The next largest producer was Shandong which accounted for 10% (620,961 MTs of output).
- In December 2013, the Zeleny corridor opened in Bakhty, East Kazakhstan Province and in its cross border checkpoint in Paikitu, Xinjiang Region, China. Additionally, Kazakhstan’s Akmola region [central Kazakhstan] planned to export 10,000 MTs of wheat to China by the end of the year. Kazakhstan expected to increase its wheat exports to China in the following years.
- In the Autumn of 2013, Chinese President Xi Jinping launched The Silk Road Economic Belt and the 21st-century Maritime Silk Road, a strategic initiative to boost the economic development and trade of countries lying along the South China Sea, Bay of Bengal, Arabian Sea, Indian Ocean, and Red Sea, as well as overland in Central Asia and Europe.
- In mid-2011, developed market economies (e.g. countries) began curtailing their imports of Chinese-made clothing and yarn products.
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