• 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.