China Issues Additional Import Quota, Sets Date for Reserve Sales



For Immediate Release 

 

Date Posted: 1 May 2019

 

Executive Summary

Highlights from the May edition of Cotton This Month regarding the 2018/19 season:

  • The USA is expected to remain the world’s largest exporter in 2018/19, despite ongoing Chinese tariffs.
  • China is projected to be the world’s largest consumer at 8.45 million tonnes.
  • The decline in US exports to China due to the ongoing trade dispute is being offset by increasing exports from other producers, primarily Australia and Brazil.
  • China approved a cotton sliding tariff import quota of 800,000 tonnes for 2019; the reserve auction will begin on 5 May and run through 30 September.

 

ChinaIssues Additional Import Quota, Sets Date for Reserve Sales

China, the world’s top cotton consumer, has announced that it will auction 800,000 tonnes from its reserve in 2019. The 25% tariffs placed on US cotton in July 2018 remain in place, however, and that has led to changes in the way fibre flows into China.

 

AsChina’s imports from the US have declined, other producers are stepping up to feed its mills, with the biggest increases coming from Australia and Brazil. Australia, which shipped 280,000 tonnes to China in the 2017/18 season, has already exceeded 440,000 tonnes through March 2019. Similarly, Brazil — which shipped 82,000tonnes to China in 2017/18 — has already exported 380,000 tonnes to China throughMarch 2019. Other countries that have expanded their exports to China include India, Benin, Sudan, Greece, Cameroon, Burkina Faso and Mali.

 

China’s reserve auction is scheduled to commence on 5 May and run through 30 September, with reserves being offered in 10,000-tonne quantities each day (in previous seasons, 30,0000 tonnes have been offered per day).

 


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About the International Cotton Advisory Committee (ICAC)

Formed in 1939, the ICAC is an association of cotton producing, consuming and trading countries. It acts as a catalyst for change by helping member countries maintain a healthy world cotton economy; provides transparency to the world cotton market by serving as a clearinghouse for technical information on cotton production; and serves as a forum for discussing cotton issues of international significance. The ICAC does not have a role in setting market prices or in intervening in market mechanisms. For more information, please visit www.icac.org.