Chinese cotton imports are expected to fall to their lowest level in 13 years. The country is reducing its inventories amid declining domestic use and growing competition from foreign producers. Chinese mills will bring in 5.75 million bales from overseas suppliers in the 12 months from August 2015. That’s 31 per cent lower than a year earlier and the least since 2002-2003.

Total Chinese production will also be down. Output is projected at 25.3 million bales in the period compared with 29.9 million bales a year earlier. Cotton prices have dropped in the past two months amid concerns about demand, particularly in China, where the government is trying to reduce near-record stockpiles at a time of slowing economic growth. China has sought to cut imports this year to stimulate demand for domestic cotton after it halted a state stockpiling program that had previously bought up most of the Chinese crop.

Mills have already used about half their import quotas for 2015 and are expected to keep the rest for new crop cotton later this year. China may stop importing the fiber by 2018 and may become a net exporter the following year as the nation’s textile industry shrinks amid foreign competition and cheap polyester prices.