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Article from Reuters on recent cotton import quota changes.
http://mobile.reuters.com/article/idUSL3N0RN1OJ20140922?irpc=932
UPDATE 2-China to cut cotton import quotas to boost demand for domestic fibre
Mon Sep 22, 2014 10:13am EDT
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* China to restrict imports quotas to 894,000 tonnes in 2015
* China only offering quota linked to WTO commitment in 2015
* Some 600,000-800,000 tns imported via another quota in 2013/14
* Official says this other quota will not be available in 2015
* Beijing wants to boost sales of domestic cotton
* China to extend subsidies to provinces outside Xinjiang (Updates with NY, Chinese futures prices; adds market comment)
By Dominique Patton
BEIJING, Sept 22 (Reuters) - China, the world's top consumer of cotton, will slash its import quotas for 2015 to boost demand for domestic fibre, a senior official said on Monday, driving futures prices in both China and the United States lower.
Beijing will only provide import quotas next year for the 894,000 tonnes that it is required to offer at low duties under commitments with the World Trade Organisation, according to Liu Xiaonan, vice head of the economy and trade department at the National Development and Reform Commission.
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Previously, China has offered another type of quota, in addition to the one compliant with the WTO, but Liu said no additional quota would be made available next year.
Non-quota imports are subject to a 40 percent tariff, so the restricted availability of import quotas will inevitably dampen Chinese demand for foreign cotton.
In the 2013/14 marketing year, traders estimated that Beijing had issued 600,000-800,000 tonnes through the additional quota that will not be available next year.
"Apart from the 894,000 tonnes of import quota required under WTO entry commitments ... we will not issue additional import quota, instead guiding domestic textile companies to use more Chinese cotton," Liu told reporters. | |
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News on the cotton front looks rough.....
