Domestic cotton stocks totaled 3.43 million tons by the end of February

After March, the cotton market entered the peak season for consumption, but at present, the demand for textile companies is still not strong. Most cotton companies still use the storage to digest high-quality cotton stocks.

This also led to a slow digestion of the cotton business stocks. At present, the purchasing and storage are approaching the end, but the willingness of the textile companies lacking sales is still low.

According to the survey, 42% of enterprises have cotton deposits of 500-1,000 tons, an increase of 1% from the previous month; 16% of enterprises have cotton deposits of 200-500 tons, which is the same as last month; 19% of enterprises deposit cotton in Less than 200 tons, an increase of 4% over the previous month; 12% of enterprises stored cotton in 1000-2000 tons, a decrease of 3% compared with the previous month; 11% of enterprises stored more than 2,000 tons of cotton, a decrease from the previous month 2%.

In addition, data from China Cotton Information Network shows that as of the end of February 2012, the total domestic cotton business inventories totaled 3.43 million tons, an increase of 180,000 tons from 3.25 million tons at the end of last month.

If the situation of domestic cotton consumption in the latter period has not yet improved, then the huge domestic commercial stocks and state reserves will exert tremendous pressure on cotton prices.