International Cotton Advisory Committee (ICAC) revealed in a statement the current situation of world cotton mill use. According to the statement, world cotton mill use increased from 18.6 million tons in 1998-99 to 26.7 million in 2007-08. While mill use in 2011-2012 is 22.7 million tons, this season it has been forecast at 23.2 million tons.
According to ICAC, with support price of $1.40 per pound and import quotas, Chinese government policy leads to erosion in the mill use of cotton in China. The mill use in 2012-13 in China is 8.6 million tons, same as the previous season, far below 11 million tons five seasons ago. Counterbalanced by rising polyester and rayon use, the loss in China's cotton mill use causes a rapid decline in the cotton market share.
Declining in China in terms of global market, the mill use of cotton is rising in some countries including India, Pakistan, Turkey and the USA. In 2012-13, global cotton use is estimated at 25.2 million tons. Although lower than the last season, this figure remarks the continuity of consumption.
This season in China, production is anticipated to be more efficient than predicted. Due to government applications, the amount of production in India is expected to fall to 5.2 million tons. However, production in the USA is expected to increase after the drought of 2011. ICAC puts forward that cotton planting areas in Brazil and other countries will be reduced due to the increase ingrain and oilseed prices.
In 2012-13, world trade is estimated at 7.3 million tons, 2 million tons less than last season, the smallest in the last four seasons.
