Washington – The early impacts of COVID-19 are crippling the cotton supply chain, according to the International Cotton Advisory Council (ICAC).
“Brands and retailers are cancelling orders, leaving spinners and textile manufacturers in Asia and Southeast Asia in a financial crisis,” said the organization, which is an association of cotton producing, consuming and trading countries.
The global cotton production estimate for the 2019/20 season remains unchanged at 25.9 million tons. However, ICAC’s our consumption estimate has been revised downward to 24.6 million tons.
The 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. The first price projection for the year-end 2020/21 average of the Cotlook A Index is 64 cents per pound.
“We don’t yet know what the ultimate impact of Covid-19 will be on the cotton industry, but the fast-moving pandemic has injected a tremendous amount of uncertainty into every link in the global supply chain,” ICAC stated.
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