Little Change in Taiwan Cotton Imports

WASHINGTON - Jun 4/06 - SNS -- Taiwanese demand for cotton should remain relatively constant through the balance of the decade, but improved prices for the coming season could result in a modest decline in import activity, according to a recent review by the U.S. agricultural attache for the country.

Larger than expected cotton yarn exports to China, an increase in cotton yarn spindle numbers, and low cotton prices drove cotton imports in 2004-05 up by 33% to 291,000 metric tons (MT).

Higher cotton prices are expected to reduce imports to 250,000 MT in 2005-06. Imports are projected at 240,000 MT in 2006-07 as ending stocks are reduced from approximately 100,000 MT in 2005 to 65,000 MT in 2007.

"Unlike other types of textiles, Taiwan cotton consumption is expected to remain relatively constant." the U.S. agricultural attache said. "Industry contacts maintain that the price of cotton does not affect the quantity of cotton clothing consumed in Taiwan, and that demand is consumer driven.

"The key variables in our forecasts are the ability of Taiwan cotton consumption to continue to decline more slowly than the rest of the Taiwan textile industry and cotton prices. Taiwan has sometimes been opportunistic in its cotton purchases, and often builds stocks when prices are low."

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