Declining cotton demand leaves rising inventories

China, the world's largest cotton consumer, is expected to see drops in cotton consumption this year as a result of its economic slowdown and grim export business from many key Western markets.

The country currently accounts for 40 percent of global cotton consumption, and any dent in its demand is likely to put considerable downward pressure on the global cotton price, analysts said.

The latest data show that the export value of China's textile industry was $137.4 billion from January to July this year, a decline of 0.2 percent on the same period last year - the first decline in a decade.