Owing to slower economic growth and higher prices
COIMBATORE: Cotton consumption by textile mills globally is expected to decline slightly in 2008-2009, according to the Southern India Mills’ Association.
The use of cotton by world mills was expected to decline by one per cent in 2008-2009 to 26.2 million tonnes due to slower global economic growth and higher prices of cotton relative to polyester, the association said in a circular to its members on the global cotton scenario for this season.
Global mill consumption increased continuously between 1998-1999 and 2006-2007.
But, it was stable in 2007-2008 at 26.6 million tonnes and was projected to come down in 2008-2009, especially in Turkey, the U.S., Brazil, European Union, Mexico, Thailand, Russia, Korea and Taiwan.
The consumption in China, Bangladesh, Indonesia and Vietnam would increase, though slowly.
Higher prices of cotton relative to polyester were resulting in a contraction in the market share of cotton in the total fibre use, the association pointed out.
Slow pace of world economic growth was affecting the end-use demand for textile products.
The economic growth was expected to be slower in industrial and developing countries.
Since last year, cotton prices had go up faster than polyester prices and the international cotton prices were likely to go up in 2008-2009, the association said.