ICAC: Mill Use Recovery to be Slow in 2009/10

By Jim.Robinson|September 9, 2009

The International Cotton Advisory Committee (ICAC) has released the following on expected production and mill use for 2010:

As the world economy gradually stabilizes and economic prospects for 2010 improve in most parts of the world, consumption of cotton products and spinning of cotton are expected to slowly recover. Global cotton mill use is forecast to grow by 2 percent in 2009/10 to 23.6 million tons. The small increase in global cotton spinning expected in 2009/10 will be driven by a rebound in Asia, in particular China (Mainland), India and Pakistan. The share of Asia in world cotton mill use is forecast to increase from 76 percent to 77 percent in 2009/10.

World cotton production is expected to decrease slightly to 23.3 million tons in 2009/10. Increases in India, the United States, Pakistan and Australia are expected to be more than offset by declines in China (Mainland), Central Asia, Brazil, Turkey, and Mexico. The share of Asia in world cotton production is expected to reach almost two-thirds in 2009/10.

The expected increase in world cotton mill use should generate a small rebound in world cotton imports, to 6.8 million tons. A number of countries are expected to import more cotton in 2009/10, including China (Mainland), Bangladesh, Turkey and Pakistan. Exports from the United States are expected to decrease by 20 percent to 2.3 million tons, while exports from India could rebound strongly to 1.3 million tons.