The Egyptian cotton exports are still keeping a good foothold in the World Market of Extra Long Staple cotton (ELS), despite the fact that USDA has announced its new Pima Cotton – ELS competitive payment rate that will take effect from December 31 st to January 6 th 2005 , recording its highest levels by reaching 47.63c/lb. .
The USA Pima cotton competitive payment rate has increased with more than double since mid April 2004, time when its rate value did not exceed 23c/lb, which accordingly was reflected in lower prices by the Egyptian cotton exporters in order to generate demand and limiting the risks of having huge carryovers as has been the case during last season. Furthermore, the Egyptian Cotton exporters have been confronted with further surge in export subsidies (USDA Competitiveness payment rate), weaker US Dollar, and low cotton prices worldwide compared to last year. The USA Pima cotton exports volume (previously called American-Egyptian cotton) has managed to exceed the Egyptian cotton export volume for the 2 nd year consecutively by more than 35,000 Tons. The USA Pima cotton export volume for this season 2004/2005 has exceeded last season export volume by more than 31%, while Asian spinners constituted more than 80% of USA Pima exports ( Pakistan 21.5%, China 18.82%, and Taiwan 10.21%). .
The new investments in spinning machinery goes to India, China, Pakistan and Turkey, which have been the worldwide leading countries in ring spindles investments for the last three years. These countries are now switching their production strategy to high quality products despite their long history with mass production and low quality merchandise manufactured from short staple cotton yarn spinning. Egyptian Cotton is opposed by fierce unfair competition, case which can be one of the illustrative situation for the cotton complain to WTO against USA policy, disagreeing with the USA cotton subsidies that unfairly boost USA cotton production and exports and decreasing the world cotton prices. Still, the Egyptian cotton demand is generated through the consumers and end-users perception worldwide as the finest natural fiber in the world. .
Egyptian Cotton remains the main supplier of ELS cotton fiber to EU countries. Although Italy consumption has decreased, the export value has been balanced with higher demand from Switzerland . The demand for the Egyptian Cotton in Asia is dominated mainly from India , representing 28% of Egyptian Cotton exports becoming the main importer of Egyptian Cotton worldwide for the past 3 years consecutively. Meanwhile, Egyptian Cotton presence in Pakistan and China is insignificant compared to the US Pima cotton.