China's textile mills work off cotton inventories ahead of state sale

Beijing

CHINA'S textile mills have worked off cotton inventory in the hope of picking up lower-priced fibre when the government in the world's top textile market resumes annual sales of state reserves on Monday even after getting caught short last year.

China will offer 30,000 tonnes of cotton per day for sale until the end of August, the National Development and Reform Commission announced late last year, as Beijing seeks to whittle down its large, ageing stockpile. "Most of the companies have low stocks, as they expect cotton prices would drop with the coming state reserves auction," said Ye Jianchun, vice-president of China Cotton Textile Association, at an annual cotton industry conference held in Beijing on Friday. "They are also confident that the q…