Preliminary estimates peg June yarn output in China climbing to a new record of 2.0 million tons, a gain of 9.0% from twelve months earlier. This latest month marks the fortieth consecutive time that yarn production increased from year-earlier levels, a streak untouched elsewhere in the world. The June volume brings cumulative production over the first eleven months up 10.0% from this period last year, faster than the 5.0% growth in cotton mill demand for the 2007/08 marketing year estimated by the USDA. Assuming both figures are accurate, this implies cotton may be losing share at the yarn stage this year in China, paralleling similar recent conclusions reached for 2007/08 downstream fabric production detailed here.

Source：globecotnews