#Raw Materials
Early impacts of Covid-19 are crippling the cotton supply chain
- The ultimate impact of the Covid-19 virus on the cotton and textile industry is uncertain but the sector has been affected along with the general economy
- Brands and retailers are cancelling orders, leaving spinners and textile manufacturers in Asia and Southeast Asia in a financial crisis
- The global consumption estimate has been revised downward to 24.6 million tonnes
As many businesses have been required to slowdown or close for the consideration of public health, manufacturing and supply chain activity in Asia and Southeast Asia have decelerated as orders have slowed or have been cancelled — and things could get much worse in the coming months. The initial impacts of Covid-19 on GDP growth in many major economies is likely to be significant in the short term.
The Secretariat’s current price projection for the year-end 2019/20 average of the Cotlook A Index has been revised to 73.5 cents per pound this month. Our first price projection for the year-end 2020/21 average of the Cotlook A Index is 64 cents per pound.
The global production estimate for the 2019/20 season remains unchanged at 25.9 million tonnes while our consumption estimate has been revised downward to 24.6 million tonnes.
Cotton This Month is published at the beginning of the month with the Cotton Update published mid-month. The Cotton Update, which is included in the Cotton This Month subscription, is a mid-month report with updated information on supply/demand estimates and prices. The next Cotton Update will be released on 15 April 2020. The next Cotton This Month will be released on 1 May 2020.
