In spite of Washington's announcement earlier this year to limit imports of Chinese combed cotton yarn, shipments have not exceeded quota limits. Accordingly, should Washington agree to reapply safeguard measures, the quota will be lower than set for 2005. Total US imports of both combed and carded varieties have declined this year whilst plummeting in September. South Korea, Thailand and India have increased shipments in 2005.
Earlier this year, Washington decided to impose a quota on imports of combed cotton yarns from China in category 301.
Quota only 35% full
There had been no distinct threat at the time especially as many other countries export more volume to the US than did China.
Latest statistics from the US Department of Commerce show only 35 per cent of the quota has been filled this year after the decision to impose quotas from 26 May.
Industry organisations have requested that CITA again apply quotas for 2006.
Accordingly, the quota is set to be lower than it is for 2005 - at around 2.278 tonnes.
Falling shipments
Imports into the US in both category 300 and 301 (carded and combed varieties) have been decreasing throughout the year with shipments dropping sharply in September.
There was an overall volume fall of 19.4 per cent for category 300 and a 6 per cent fall in category 301 during January to August 2005 compared to the same period last year.
The fall was even greater during September with imports falling by 32 and 17.6 per cent respectively compared to September 2004.
Imports from China, ranked seventh, in category 301 increased throughout 2005 by 20 per cent but fell 62 per cent during September.
Against the overall decline, category 301 imports into the US from South Korea, Thailand and India have been increasing in 2005.
The first two countries increased their US-bound exports 205, 56 per cent respectively in volume terms whereas India increased by a staggering 39,733 per cent.
During 2004, imported carded cotton made up 5 per cent of usage in the US but in category 301, 85.7 per cent of combed cotton came from outside national borders.
US domestic combed cotton production increased 13.3 per cent - the first increase since 1997.
However, there was also a 20.5 per cent increase in combed cotton imports.
Unit Value decreasing
Prices have continued falling through 2005.
The price for carded cotton fell 9.25 per cent to $2.47 per kilo on average.
All leading producers reduced their cost with Pakistan one of the cheapest options for US buyers at $2.17 per kilo and cheaper than China.
Prices fell 16.4 per cent for combed cotton averaging at $2.93 per kilo during January to August.
Again, all top US suppliers reduced their prices significantly.
The top six suppliers, with the exception of Mexico, were cheaper than China's average $2.76 per kilo.
