Beijing, CNCotton: CNCotton has modified China's cotton balance sheet for 2001-2005 period so as to provide a more accurate estimate.

Explanation for 2001-2005 China's cotton balance sheet

I. Production

All data are from National Bureau of Statistics (NBS).

II. Import

  All data are from State Administration of Customs.

III. Yarn production

  All data are from NBS.

1.  Yarn production before 2002 are for mills with capacity of over 50,000 spindles.

2.  The data of 2002/03 and 2003/04 are modified data from NBS (yarn production of smaller mills are added)

3.  Cumulative yarn production from September 2004 to June 2005 is from NBS. Yarn production of July and August is based on CNCotton's estimates. Thus, total yarn production of 2004/05 is estimated at 12.54 million tons, up 25% year on year.

4.  Yarn production of 2005/06 is expected to reach 13.8 million tons based on an estimated 10% increase from 2004/05.

IV. Cotton share in yarn production and mill use

1.  Historical annual mill use is based on yarn production, unit fiber use per ton and cotton share.

2.  Cotton consumption from 2002/03 to 2005/06 is based on China National Textile & Apparel Council (CNTAC).

3.   Unit fiber consumption per ton from 2002/03 to 2005/06 is not yet released by CNTAC.  Our estimate is based on five-year average data before 2002/03.

4.   Cotton share in yarn production before 2002/03 is based on the annual report of textile industry and the data provided by CNTAC.

5.  Cotton share in yarn production of 2003/04 and 2004/05 is a compositive estimate based on our surveys, CNTAC's data and market price levels. The estimate for 2005/06 is based on CNCotton's supply and demand analysis.

V. Cotton consumption for other purposes

1. Cotton consumption for other purposes before 2002/03 includes mill use, ginning waste, grower's consumption and stock, wadding and medical use.

a.  Annual consumption by smaller mills is calculated by 5% of total annual mill use.

b.  Grower's consumption and stock, ginning waste, wadding and medical use average 300,000 tons per year.

2. Cotton consumption for other purposes after 2002/03 includes ginning waste, grower's consumption and stock, wadding and medical use.

a.  Ginning waste accounts for 2% of cotton production

b.  Grower's consumption and stock accounts for 1.5% of cotton production

c.  Wadding and medical use average 100,000 tons per year.