China: Cotton and Products Annual

Higher downstream demand for textiles and garments and reduced cotton yarn imports are expected to raise spinning demand for cotton in marketing year (MY) 22/23, lifting cotton imports to an estimated 2.3 million metric tons (MMT). Production for MY 22/23 is forecast at 5.9 MMT on modest expansion of planted area in Xinjiang. Cotton consumption for MY 22/23 is expected to reach 8.6 MMT on strong export demand for cotton products, however slower economic growth, sluggish consumer spending, and “zero-tolerance” COVID policies pose a challenge to domestic consumption in MY 21/22 and beyond.