VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 07/2022 ISSUE

MONTHLY REPORT
MONTHLY REPORT
Cotton and Yarn Statistic
Cotton and Yarn Statistic
July 2022
---For internal circulation only---
Collected&Edited:InformationandCommunicationDept.
VietnamCottonandSpinningAssociation

VIETNAM COTTON AND SPINNING ASSOCIATION_______________________JUL 2022 – MONTHLY REPORT
15/Fl., Block B, Viettel Complex Tower, 285 CMT8 Str, Ward 12, District 10, Hochiminh City, Vietnam.
Hotline: 84-902379490, Email: info@vcosa.org.vn
Account VND: 007 100 559, USD: 0001887357124
At Military Commercial Joint Stock Bank
Swift code: MSCBVNVX
Ho Chi Minh city, Jul 26th , 2022
MONTHLY REPORT Jul 2022
Contents
Report and Database ...............................................................................................................3
Monthly Import Statistics ..................................................................................................................................3
Monthly Export Statistics...................................................................................................................................7
VCOSA’s events........................................................................................................................10
Remarkable information .................................................................................................................................14
Domestic market.............................................................................................................................................. 14
Global market................................................................................................................................................... 14
An update on import performance.............................................................................................................14
Import price of cotton slows down.................................................................................................................. 14
Forecast of a decrease in the price of imported yarn...................................................................................... 16
It is forecasted that the import price of fiber will remain high........................................................................ 20
An update on export performance..............................................................................................................22
Export prices of fiber and yarn tend to decrease............................................................................................. 22
Cotton Outlook Jul-2022..................................................................................................................................24
Source ........................................................................................................................................26
Reference from Newspapers..............................................................................................26
China’s PSF exports increase while imports decline in May 2022 ...............................................26
China’s June Cotton Yarn Imports Down 17.6% MoM .......................................................................27
US cotton futures experienced sharp decline in past month: Cotton Inc..................................29
India and China Lead 2022/23 Global Cotton Production Forecast............................................29
World Cotton Production To Increase in 2022/23 .............................................................................30
Global Cotton Mill Use Flat in 2022/23, World Trade and Stocks To Rise...............................32

Page | 1

Page | 3
Report and Database
Cotton Fiber, Cotton Yarn, Cotton Fabric imports and exports are covered in monthly report.
Monthly Import Statistics
Items
6-2022
Compare last
month (%)
6 months 2022
Compare last
period (%)
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q’ty Value
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q’ty Value
Cotton 93.5 271.6 -22.4 -19.6 680.9 1,831.6 -22.7 15.5
Fiber & Yarn 91.3 245.3 -10.8 -4.8 552.2 1,408.1 -6.6 6.4
Fabric - 1,302.1 - -18.4 - 7,950.9 - 9.0
Accessories - 583.6 - -13.2 - 3,522.0 - 5.5
TOTAL - 2,402.5 - -14.0 - 14,712.5 - 9.1
In Jun 2022, Vietnam's cotton imports reached 93.5 thousand tons, worth 271.6 million USD,
down 22.4% in volume and 19.6% in value compared to the previous month, down 35.8% in
volume and 4.5% in value over the same period last year.
Fiber & yarn imported to Vietnam was 91.3 thousand tons, worth USD 245.3 million, down
10.8% in volume and 4.8% in value compared to the previous month; decreased by 1.7% in
volume but increased by 8.9% in value compared to June 2021.

Page | 4
According to preliminary data in June 2022, cotton imported reached 93.5 thousand tons, down
22.4% compared to the previous month. Imported of fiber and yarn was 91.3 thousand tons, up
10.8% over the previous month.
145.5
140.5
133.6
159.3
125.6 128.2
109.6
127.7
118.6 122.3
97.0
120.4
93.5
92.9 91.0
70.7
60.6
73.2
94.6
111.2
93.4
80.6
100.7
83.6 102.3
91.3
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
1,000
MT
Vietnam Cotton, Fiber & Yarn Import
6 Months 2022 (1,000 MT)
Cotton Fiber & Yarn
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
Million
USD
Vietnam Import 6 Months 2022 (Mil. USD)
Cotton Fiber & Yarn Fabric Accessories

Page | 5
According to preliminary data in June, 2022, Vietnam imported cotton was about 93.5 thousand
tons, down 22.4% compared to the previous month, down 35.8% over the same period last year.
According to preliminary data in June 2022, imported of fiber and yarn was about 91.3 thousand
tons, down 10.8% over the previous month, down 1.7% over the same period last year.
112.2
74.6
117.9
103.2
93.8 92.9 91.0
70.7
60.6
73.2
94.6
111.2
93.4
80.6
100.7
83.6
102.3
91.3
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Vietnam Fiber & Yarn Import 6 Months 2022 (1,000 MT)
2021 2022
123.5
102.1
176.3 175.3
158.0
145.5
140.5
133.6
159.3
125.6 128.2
109.6
127.7
118.6 122.3
97.0
120.4
93.5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Vietnam Cotton Import 6 Months 2022 (1,000 MT)
2021 2022

Page | 6
In the first 6 months of 2022, Vietnam imported cotton worth 1.83 billion USD, up 15.5% over
the same period last year; import of fiber and yarn valued at USD 1.41 billion, up 6.4%; fabric
import was USD 7.95 billion, up 9%; import of raw materials for textiles, garments and footwear
increased by 5.5% over the same period last year, valued at US$3.52 billion.
1,662.2
2,362.4
3,011.7
2,573.4
2,282.3
3,232.2
1,831.6
1,609.0
1,821.6
2,418.6
2,409.8
1,998.8
2,552.6
1,408.1
10,483.3
11,381.1
12,771.9
13,276.0
11,875.6
14,324.7
7,950.9
5,058.8
5,428.5
5,711.4
5,863.6
5,381.1
6,255.6
3,522.0
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
16,000.0
2016 2017 2018 2 0 1 9 2020 2021 2022
MILLION
USD
VIETNAM IMPORT FROM 2016 TO 2022
(MIL. USD)
Cotton Fiber & Yarn Fabric Accessories

Page | 7
Monthly Export Statistics
Items
6-2022
Compare last
month (%)
6 months 2022
Compare last
period (%)
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q’ty Value
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q'ty Value
Yarn 131.2 402.9 -3.9 -8.2 854.1 2,775.5 -13.5 4.9
Textile & Apparel
(include fabric)
- 3,586.5 - 13.1 - 18,530.6 - 20.8
- Fabric - 248.3 - 0.3 - 1,438.8 - 22.9
Accessories - 199.5 - -3.0 - 1,179.3 - 18.5
Technical Textile - 76.9 - -7.3 - 453.7 - 26.1
TOTAL - 4,265.8 - -1.4 - 22,939.1 - 17.6
In June 2022, Vietnam exported 131.2 thousand tons of fiber and yarn, worth US$402.9 million,
down 3.9% in volume and 8.2% in value compared to the previous month; down 23.6% in
volume and 17.7% in value compared to June 2021.
Fiber and yarn exports in June 2022 were valued at US$402.9 million, down 3.9% over the
previous month; fabric exports reached 248.3 million USD, up 0.3%; accessories with a value of
$199.5 million, down 3.0%; technical textile exports decreased by 7.3%, worth 76.9 million
USD.
0.0
100.0
200.0
300.0
400.0
500.0
600.0
Million
USD
Vietnam Export 6 Months 2022 (Mil. USD)
Yarn Fabric Accessories Technical Textile

Page | 8
In the first six months of 2022, Vietnam's fiber and yarn exports were worth US$2.77 billion,
up 4.9% over the same period last year; fabric exports reached 1.44 billion USD, up 22.9%;
accessories with a value of 1.18 billion USD, up 18.5%; technical textile exports increased by
26.1%, valued at USD 453.7 million.
Textile and apparel exports in June 2022 reached 3.58 billion USD, up 13.1% over the previous
month.
3,064.6 3,118.8
2,654.6
2,277.4
2,643.9
3,044.6
3,615.2 3,571.3
2,057.8
3,052.6 3,152.1 3,170.7
3,586.5
J U N - 2 1 J U L - 2 1 A U G - 2 1 S E P - 2 1 O C T - 2 1 N O V - 2 1 D E C - 2 1 J A N - 2 2 F E B - 2 2 M A R - 2 2 A P R - 2 2 M A Y - 2 2 J U N - 2 2
MILLION
USD
VIETNAM TEXTILE & APPAREL EXPORT
6 MONTHS 2022 (MIL. USD)
2,929.5
3,593.3
4,024.9
4,177.1
3,736.6
5,612.3
2,775.5
1,078.4
1,324.8
1,759.4
2,127.0
1,943.4
2,553.1
1,438.8
1,495.2
1,710.6
1,902.1
2,014.6
1,687.5
1,994.8
1,179.3
415.3
457.9
529.7
588.9
456.0
784.7
453.7
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
2016 2017 2018 2019 2020 2021 2022
Vietnam Export from 2016 to 2022 (Mil. USD)
Yarn Fabric Accessories Technical Textile

Page | 9
Vietnam's fiber and yarn exports in June 2022 reached 131.2 thousand tons, worth 402.9
million USD, down 3.9% in volume and 8.2% in value compared to the previous month.
According to preliminary data in June 2022, textile and apparel exports reached 3.58 billion
USD, up 13.1% MoM, up 17% YoY.
171.8 175.6
156.3 144.9 148.0 157.3
123.9
144.2 132.4
164.3
146.2 136.4 131.2
489.3
517.9
481.1
453.4 468.1
512.3
534.9
473.7
444.0
531.9
487.1
439.1
402.9
0
100
200
300
400
500
600
Vietnam yarn export 6 months 2022
Qty (1,000 MT) Value (Mil. USD)
2,660.8
1,820.8
2,723.9
2,458.8
2,573.8
3,064.6
3,118.8
2,654.6
2,277.4
2,643.9
3,044.6
3,615.2
3,571.3
2,057.8
3,052.6
3,152.1
3,170.7
3,586.5
JA N F E B MA R A P R MA Y JUN JUL A UG S E P OC T NOV DE C
MILLION
USD
VIETNAM TEXTILE & APPAREL EXPORT
6 MONTHS 2022 (MIL. USD)
2021 2022

Page | 10
VCOSA’s events
SUMMIT HIGHLIGHT:
❖ Policy Analysis for Vietnam Textile and Apparel Industry and Outlook for 2040
❖ Value Chain Impacts for Textiles Consumption in the EU and Related Policies
❖ Trade & Tax: The Trend of Vietnam Textile and Apparel Industry Under the Impact of
USA & China
❖ Road to Recovery: Post Pandemic Business Outlook in Vietnam
❖ Challenges and Opportunities for Global Supply Chain and How It’s Going to Affect
Vietnam Textile and Apparel Industry
❖ Under the Background of Industrial 4.0, Will Digital Transformation Help Vietnam
Recover from Covid 19 and Grow Faster
❖ Integrating Value Chain Approaches to Determining
❖ BAT (Best Available Techniques) for Industrial Installations
❖ Speed to Market: How to Do it More with Less and Do it Faster
❖ Panel Discussion: Under the New Global Trade Environment, How Will Manufactures and
Brands Work Together to Build a More Resilience Supply Chain
❖ Big Data Analytics for Manufacturing
❖ Post Covid Sourcing Strategy: What Should We Prepare for Sourcing in Vietnam and SEA
❖ Development of Eco-friendly Materials and Technologies to Adapt to Global Sustainable
Fashion Trends
❖ Rethinking Business Models for the Fashion Industry: Environmental and Value Chain
❖ Plastic Waste is Growing: Economic Drivers, Environmental Impacts and Policy Options
❖ Case Study: Carbon Footprint Assessment for Vietnam Textile and Apparel Industry
❖ Population and Labor Force: How Vietnam Manufactures Strengthen Their Competition
❖ Sustainable Chemistry in Textile Processing — the Need of Hour in Vietnam
❖ Panel Discussion: Past and Future - What’s the difference Between Vietnam and Other
Asian Countries
For registration: please click https://bit.ly/3LIiX5a

Page | 11
The Vietnam Cotton and Spinning Association (VCOSA) is a non-governmental organization,
established and operating under Decision No. 1225/QD-BNV dated October 27, 2010 of the
Vietnam Ministry of Home Affairs on the basis of merging the Vietnam Cotton Association and
Vietnam Spinning Association.
VCOSA is the legal representative for the member enterprises, spinning and affiliated industry.
VCOSA’s mission is to promote the development of the spinning industry, contributing to the
overall development of the textile and garment industry in Vietnam.
VietnamYarnPrice, abbreviated as VYP, is one of products of VCOSA. VYP is built and developed
according to the needs of members. VYP is operated and developed by members and enterprises
(called users) by the information that users contribute everyday.
What kind of information that you can get from VYP?
1. Fiber prices: cotton fiber, polyester fiber, semi-finished products from PE, visco fiber.
2. Yarn prices: CD, CM, OE, TC, CVC, PE, Rayon, PC, Pe-Rayon... Multi yarn count.
3. Yarn prices for weaving or knitting.
4. Prices of fibers and yarns of various types and specifications contributed by users from
Vietnam.
5. Prices of fibers and yarns of various types and specifications contributed by users from
abroad.
6. Historical data from 3-10 years.
7. Range of volatile price in 1 day, 1 week and 1 month for fibers and yarns.
8. Chart of price movements over each period.
9. Document download in EXCEL/PDF.
What benefits user get from VYP?
Where is the price data source?
1. Yarn prices are shared and contributed by users in Vietnam and other countries.
2. Prices are referenced from international market.
3. Prices are referenced from domestic market of China, India, Pakistan, Bangladesh.

Page | 12

Page | 13
Executive Committee meeting - Summary of VCOSA activities in the first 6 months of 2022
Thai Binh city, July 15th, 2022, VCOSA held a meeting of the Executive Committee – Summary of
activities in the first 6 months of 2022 with the participation of representatives of enterprises
in the cotton and spinning industry in Vietnam, associated members and representatives of the
Cotton Council International (CCI) - Cotton USA in Vietnam. Mr. Nguyen An Toan, Chairman
of VCOSA hosted the meeting.
The main contents of the meeting include:
• Summary of Vietnam's Spinning industry and Association activities in the first 6 months
of 2022.
• Appointment Ceremony of Senior Advisor of Vietnam Cotton and Spinning Association:
Mr. Tran Dang Tuong, Chairman of Thien Nam Investment and Development Joint Stock
Company.
• Announcement ceremony of new members joining VCOSA in 2021 and 2022.
• The Association's work plan in the second half of the year.
• Discuss and share opinions of members of the Executive Committee, member businesses
and guests.
The cotton and spinning industry, after rapid growth in 2021, will gradually find a balance in
2022. The market is expected to remain complicated with new challenges in the context of
logistics congestion, production disruptions, high transportation costs and shortage of raw
materials.
Through the meeting, VCOSA received many enthusiastic and practical contributions from
enterprises to build the Association stronger. The meeting is also an opportunity for enterprises
to meet and share business and production activities to strengthen their relationship.

Page | 14
Remarkable information
Domestic market
o Import price of cotton slows down
o It is forecasted that the import price of fiber will remain high
o Forecast of a decrease in the price of imported yarn
o Export prices of fiber and yarn tend to decrease
Global market
o China’s PSF exports increase while imports decline in May 2022
o China’s June Cotton Yarn Imports Down 17.6% MoM
o US cotton futures experienced sharp decline in past month: Cotton Inc
o India and China Lead 2022/23 Global Cotton Production Forecast
o World Cotton Production To Increase in 2022/23
An update on import performance
Import price of cotton slows down
According to statistics of the General Department of Customs, cotton imports to Vietnam in May
2022 reached 120.4 thousand tons, worth USD 337.72 million, up 24.1% in volume and 24.9%
in value compared to April 2022; down 23.8% in volume but up 11.4% in value compared to
May 2021.
Generally, in the first 5 months of 2022, cotton imported to Vietnam reached 587 thousand tons,
worth 1.55 billion USD, down 20.1% in volume but up 19.9% in value over the same period in
2021.
Vietnam’s import cottons in 2021-2022 (thousand tons)

Page | 15
In the first 5 months of 2022, Vietnam imported raw cotton from 10 markets, stable compared
to the same period in 2021. Vietnam's import of raw cotton from some main markets decreased
sharply compared to the same period last year. 2021 such as the US, Brazil, India... Specifically:
Vietnam imported the most cotton from the US market in the first 5 months of 2022, with an
import volume of 193 thousand tons, worth USD 557 million, down 36.9% in volume and down
0.3% in value compared to the same period in 2021, accounting for 32.9% of total cotton
imports. Particularly in May 2022, cotton imports from this market reached 57.72 thousand
tons, worth $163 million, down 30.3% in volume but up 1.2% in value compared to May 2021.
In second place is the Brazilian market, cotton imports from the Brazilian market in the first 5
months of 2022 reached 165 thousand tons, worth 438 million USD, down 21.8% in volume but
up 17.3% in value compared to the previous year. In the first 5 months of 2021. In May, 2022
alone, cotton imports from this market reached 36.9 thousand tons, worth 106.8 million USD,
up 10.7% in volume and 66.4% in value compared to May 2021.
In addition, cotton imports from some other markets in the first 5 months of 2021 increased
sharply in volume compared to the same period in 2021 such as: from Australia increased by
82%; from Argentina increased to 412%.
Vietnam's import cottons in May 2022
Exporter
May-2022 Compared to
Apr-2022
(%)
Compared to
May-2021
(%)
5M2022 Compared
to 5M2021
(%)
Qty
(ton)
Value
(1,000 USD)
Qty Value Qty Value Qty
(ton)
Value
(1,000 USD)
Qty Value
Total 120,409 337,730 24.1 24.9 -23.8 11.3 587,129 1.559.017 -20.1 19.9
USA 57,720 163,039 -26.4 12.4 -30.3 1.2
193,60
7
557,269 -36.9 -0.3
Brazil 36,902 106,804 -18.3 28.4 10.7 66.4
165,79
3
438,680 -21.8 17.3
India 9,613 22,025 -67.7 -56.1 -48.4 -32.5 82,410 190,205 -18.7 16.2
Australia 2,149 6,398 -58.2 -35.0 -73.7 -61.2 47,783 123,974 82.0 137.7
Argentina 2,583 7,211 388.3 618.2 1,494.4 2,036.1 30,359 79,741 412.7 723.7
Ivory Coast 612 1,810 -81.1 -71.4 -84.3 -76.0 13,531 32,854 -20.2 8.5
Indonesia 115 170 -80.7 -77.4 -69.2 -62.5 2,709 3,668 -41.0 -38.3
Korea 232 536 -47.9 -16.6 -56.3 -45.2 1,321 2,372 -7.0 -5.4
Pakistan 691 991 -22.2 -22.3
China 186 350 -22.8 -36.4
About price: Following the upward trend of world cotton prices, the price of cotton imported
into Vietnam also increased sharply in the first months of 2022. Specifically, in the first 5
months of 2022, the price of imported cotton to Vietnam averaged 2,655 USD/ton, up 50.1%
over the same period in 2021.

Page | 16
In May 2022 alone, the price of cotton imported into Vietnam reached $2,805/ton, up 0.6%
compared to April 2022 and up 46.2% over the same period in May 2021.
The average import price of cotton in 2021-2022 (USD/ton)
The price of imported raw cotton increased in most markets in the first 5 months of 2022. In
which, the price of imported raw cotton from Indonesia was the lowest with an average of 1,475
USD/ton; followed by India at $2,291/ton and the highest import price from Australia was at
$2,977/ton.
Import price of cotton May 2022
Exporter
May-2022
(USD/ton)
Compared to
Apr-2022
(%)
Compared to
May-2021
(%)
5M2022
(USD/ton)
Compared to
5M2021 (%)
Total 2,805 0.6 46.2 2,655 50.1
USA 2,825 52.8 45.2 2,878 58.1
Brazil 2,894 57.1 50.3 2,646 50.1
India 2,291 35.9 30.8 2,308 43.0
Australia 2,977 55.7 47.5 2,595 30.6
Argentina 2,792 47.1 34.0 2,627 60.7
Ivory Coast 2,958 50.8 53.1 2,428 36.0
Indonesia 1,475 16.9 21.5 1,354 4.6
Korea 2,310 60.0 25.4 1,796 1.7
Pakistan 1,434 -0.2
China
Forecast of a decrease in the price of imported yarn
According to statistics of the General Department of Customs, import of yarn in May 2022
reached 67.06 thousand tons, worth 207.31 million USD, up 15.4% in volume and up 13.4% in
value compared to April 2022; decreased by 0.7% in volume but increased by 11.1% in value
compared to May 2021.

Page | 17
In the first 5 months of 2022, the import of raw yarn to Vietnam reached 309.53 thousand tons,
worth 946.69 million USD, down 8.9% in volume but up 7.7% in value over the same period.
period 2021.
Vietnam's import yarn in 2021-2022 (thousand ton)
China is the largest supplier of yarn to Vietnam in May 2022, with imports reaching 40.37
thousand tons, worth 128.16 million USD, up 10.9% in volume and 21% increase in value
compared to April 2022; decreased by 8.5% in volume but increased by 17.8% in value
compared to May 2021. Generally, in the first 5 months of 2022, the import of raw yarn from
China to Vietnam reached 190.96 thousand tons, worth 549.74 million USD, accounting for
61.7% of the total import volume, down 4.5. % in volume but increased by 17% in value
compared to the first 5 months of 2021.
In May 2022, the import of raw yarn from Taiwan market reached 9.7 thousand tons, worth
27.43 million USD, up 11.5% in volume and 16.7% in value compared to April. 2022; decreased
by 9.2% but increased by 2.8% in value compared to May 2021. Generally, in the first 5 months
of 2022, it reached 43.38 thousand tons, worth 119.95 million USD, accounting for 14% of
Vietnam's total import of raw yarn, down 14.9% in volume and 3% in value. prices compared
to the first 5 months of 2021.
In general, in the first 5 months of 2022, the import of raw yarn from the main supplying
markets to Vietnam decreased, except for Thailand, which increased sharply by 38.1% in
volume.
Notably, the import volume of yarn from some markets increased sharply in the first 5 months
of 2022 such as Brazil.

Page | 18
Vietnam's import yarn in May 2022
Exporter
Apr-2022
(%)
Compared to
May-2021
(%)
5M2022 Compared to
5M2021
(%)
Qty
(ton)
Value
(1,000 USD)
(ton)
Value
(1,000 USD)
Qty Value
Total 67,069 207,311 15.5 13.4 -0.7 11.1 309,535 946,691 -8.9 7.6
China 40,370 128,161 10.9 21.0 -8.5 17.8 190,965 549,745 -4.5 17.0
Taiwan 9,768 27,434 11.5 16.7 -9.2 2.8 43,386 119,959 -14.9 -3.0
India 2,412 9,960 -10.6 17.6 -40.0 -19.4 19,081 65,217 -34.4 -15.6
Korea 5,139 11,429 59.5 -6.0 132.6 12.5 15,214 49,567 -17.5 -20.9
Indonesia 2,256 6,538 23.0 2.9 -16.9 -19.9 11,361 38,232 -24.7 -2.8
Hong Kong 2,436 5,309 70.3 -44.9 191.0 1.4 5,606 28,538 0.2 -0.4
Thailand 1,074 5,424 -19.5 9.2 18.2 51.6 6,753 25,738 38.1 57.6
Japan 1,460 2,901 503.1 20.7 335.6 -23.0 2,394 11,910 39.3 -30.8
Malaysia 274 1,135 -63.7 -47.3 -35.1 44.4 3,976 9,946 5.0 89.4
Singapore 236 678 14.8 -45.5 64.2 -42.9 1,072 7,201 -5.0 -4.7
Turkey 83 976 64.1 247.8 -12.0 122.1 927 5,565 67.1 197.4
Italy 366 1,864 848.4 104.6 532.1 42.3 565 5,229 10.3 71.5
Brazil 8 35 1,765 5,086 3,144.8 4,876.8
USA 56 674 -66.1 -8.5 -23.0 64.6 723 3,972 4.6 -0.8
Bangladesh 83 1,057 -68.0 210.8 -79.5 131.2 1,807 3,185 13.8 72.8
Macau 21 387 -79.1 -71.6 -44.8 -4.2 191 2,503 -12.2 -0.6
Pakistan 29 574 -69.1 17.1 -73.4 24.8 360 2,285 -61.7 -31.6
Netherlands 15 1,004 3,585.1 7,373.2 42.9 65.7 57 2,157 20.3 19.9
Australia 0 4 -79.0 -31.1 596 1,832 8,174.5 4,379.7
Sri Lanka 504 325 961.6 -22.0 2,231.0 52.2 594 1,274 184.0 -4.2
In terms of price: The average price of imported yarn into Vietnam in May 2022 was at
$3,091/ton, down $57/ton from April 2022, but up $329/ton over the same period in May 2021.
Generally, in the first 5 months of 2022, the price of imported yarn to Vietnam reached an
average of 3,058 USD/ton, up 18.1% over the same period in 2021.
Import price of yarn 2021-2022 (USD/ton)

Page | 19
In which, the price of yarn imported from Malaysia in the first 5 months of 2022 reached the
lowest level of 2,502 USD/ton; The next is from Taiwan with 2,765 USD/ton. Import price from
the highest market is Hong Kong with the price of 5,091 USD/ton.
World cotton yarn prices have turned down, specifically in the early days of July 2022, cotton
yarn in Zhengzhou has decreased by nearly 4,000 points, leading to the price difference
between cotton and alternative materials such as Viscose Staple yarn (VSF) and polyester fiber
(PSF) shrink significantly.
The average price of VSF 1.5D * 38mm and PSF 1.4D * 38mm in Jiangsu, Zhejiang, Guangdong
and other markets is 15,390 yuan/ton and 8,460 yuan/ton, respectively, the price difference
from the current market price of cotton 3128B in Xinjiang warehouses is about 2,600 yuan/ton
and 9,540 yuan/ton, respectively, and the price difference between 1.4D*38mm cotton and
3128B is nearly 6,000 yuan/ton, lower than April and May 2022.
Thus, the price decline of the world cotton yarn market will also affect the import price of
Vietnam's yarn, it is forecast that the price of Vietnam's imported yarn will continue to decrease.
Import price of yarn in May 2022
Exporter
May-2022
(USD/ton)
Compared to
Apr-2022
(%)
Compared to
May-2021
(%)
5M2022
(USD/ton)
Compared to
5M2021 (%)
Total 3,091 -1.8 11.9 3,058 18.1
China 3,175 9.1 28.8 2,879 22.6
Taiwan 2,808 4.6 13.2 2,765 14.0
India 4,130 31.5 34.4 3,418 28.8
Korea 2,224 -41.0 -51.6 3,258 -4.1
Indonesia 2,898 -16.4 -3.6 3,365 29.2
Hong Kong 2,179 -67.6 -65.1 5,091 -0.6
Thailand 5,048 35.6 28.3 3,811 14.1
Japan 1,986 -80.0 -82.3 4,974 -50.3
Malaysia 4,144 45.4 122.6 2,502 80.4
Singapore 2,867 -52.5 -65.2 6,718 0.3
Turkey 11,771 111.9 152.4 6,006 78.0
Italy 5,086 -78.4 -77.5 9,247 55.5
Brazil 4,081 2,882 53.4
USA 12,069 169.6 113.7 5,491 -5.1
Bangladesh 12,692 869.9 1,029.3 1,762 51.8
Vietnam 9,406 60.8 7,167 22.9
Macau 18,580 35.5 73.5 13,116 13.2
Pakistan 20,059 278.5 369.0 6,347 78.6
Netherlands 65,503 102.8 15.9 37,658 -0.3
Australia 67,358 228.6 3,075 -45.9
Sri Lanka 643 -92.7 -93.5 2,147 -66.3

Page | 20
It is forecasted that the import price of fiber will remain high
According to statistics of the General Department of Customs, Vietnam's imported fiber in May
2022 reached 33.73 thousand tons, worth 46.67 million USD, up 19.4% in volume and 15 % in
value compared to April 2022; up 1.7% in volume and 8.8% in value compared to May 2021.
Generally, in the first 5 months of 2022, the import of raw fiber into Vietnam reached 158
thousand tons, worth 218 million USD, down 14.6% in volume and 6% in value compared to
the same period in 2021.
Vietnam's import fiber in 2021-2022 (thousand ton)
China is the largest supplier of raw fiber to Vietnam, with the import volume in May 2022
reaching 14.14 thousand tons, valued at 17.47 million USD, up 11.8% in volume and 5.1% in
value compared to April 2022; increased by 6.4% in volume and 9.5% in value compared to May
2021. Generally, in the first 5 months of 2022, imports of raw fiber from China market reached
68.72 thousand tons, valued at USD 87.33 million, accounting for 43.3% of the total import
volume, down 12.7% in volume and decreased 2% in value compared to the first 5 months of
2021.
Import of raw fiber from Taiwan market ranked second, with the import volume reaching 5.91
thousand tons, worth 8.2 million USD, up 13.8% in volume and 15.9% in value compared to
April 2022; up 12.5% and 32.6% in value over the same period in May 2021. Generally, in the
first 5 months of 2022, imports of raw fiber from Taiwan market reached 23.93 thousand tons,
worth 32.21 million USD, accounting for 15.1% of Vietnam's total import of raw fiber,
decreasing 12.7% in volume and 2% in value compared to the first 5 months of 2021.
In general, in the first 5 months of 2022, imports of raw fibers from main markets into Vietnam
decreased compared to the same period in 2021, except for imports from the Indonesian market
which increased by 1% in volume.
Notably, imported fiber from some markets increased sharply in the first 5 months of 2022 such
as Bangladesh.

Page | 21
Vietnam's import fiber in May 2022
Exporter
Apr-2022
(%)
Compared to
May-2021
(%)
5M2022 Compared to
5M2021
(%)
Qty
(ton)
Value
(1,000 USD)
(ton)
Value
(1,000
USD)
Qty Value
Total 33,732 46,675 19.4 15.0 1.9 8.8 158,889 218,682 -14.2 -5.9
China 14,146 17,473 11.8 5.1 6.4 9.5 68,728 87,334 -12.7 -2.0
Taiwan 5,918 8,204 13.8 15.9 12.5 32.6 23,935 32,216 -21.1 -3.5
Korea 2,996 5,219 -20.4 -19.8 -8.8 -1.4 16,562 28,148 -8.6 1.1
Thailand 5,680 7,311 184.1 154.9 42.3 56.5 18,514 24,888 -3.0 8.8
Indonesia 1,428 1,756 -8.8 -15.3 -17.1 -20.3 13,456 16,930 1.0 2.0
India 1,426 1,702 17.2 19.9 -51.2 -50.6 7,721 8,723 -17.0 -23.5
Singapore 351 1,381 7.9 41.6 163.6 108.1 1,707 4,809 21.9 34.3
Greece - -100.0 -100.0 -100.0 -100.0 878 2,855 -78.1 -72.2
Malaysia 354 471 2.0 0.9 258.2 235.0 1,552 1,964 0.6 6.0
Japan 237 617 58.8 109.7 23.3 59.9 811 1,959 -34.1 -26.4
Cambodia 240 226 -34.3 -34.4 -58.3 -51.2 1,606 1,474 46.8 70.2
USA 101 263 -0.6 -3.4 89.6 271.1 414 1,220 -60.0 -49.0
Germany 301 989 616.0 582.3 345 1,144
About price: In May 2022, the price of imported fiber to Vietnam averaged $1,384/ton, down
3.7% compared to April 2022, but up 6.8% compared to May 2021. In which, the lowest price
of raw fiber imported from India reached 1,194 USD/ton; followed by China at $1,235/ton and
the highest import price from Singapore was at $3,939/ton.
Import price of fiber 2021-2022 (USD/ton)
Enterprises importing textile and garment materials have passed nearly the first 6 months of
2022 with a series of global fluctuations. The price of imported fiber has turned down, the
demand for fiber and cotton in the market has faced many obstacles. Inflation, continuing
transport crisis, broken supply chain due to military conflict in Ukraine, lockdown due to Covid-
19 in China, as well as the withdrawal of economic support from the US and other economies ,
have created macro difficulties for the global commodity market.

Page | 22
With the rapidly changing geopolitical and macroeconomic situation, the market for fiber and
cotton also has many fluctuations in output. Estimates of cotton production for the 2022/23
crop also face many difficulties due to high prices of other agricultural products competing with
cotton, a decrease in planted area due to drought, and high fertilizer prices.
It is forecasted that the world raw fiber price will adjust slightly in the near future but will
remain high compared to the same period in 2021. This will also affect the price of imported
raw materials into Vietnam in the coming time.
Import price of fiber in May 2022
Exporter
May-2022
(USD/ton)
Compared to
Apr-2022
(%)
Compared to
May-2021
(%)
5M2022
(USD/ton)
Compared to
5M2021 (%)
Total 1,384 -3.7 6.8 1,256 9.6
China 1,235 -6.0 2.9 1,132 12.2
Taiwan 1,386 1.8 17.9 1,100 22.4
Korea 1,742 0.8 8.1 1,537 10.6
Thailand 1,287 -10.3 10.0 1,199 12.2
Indonesia 1,230 -7.1 -3.8 1,245 1.1
India 1,194 2.3 1.3 1,225 -7.8
Singapore 3,939 31.2 -21.0 2,557 10.2
Greece 2,565 26.8
Malaysia 1,333 -1.1 -6.5 1,201 5.4
Japan 2,599 32.1 29.7 2,162 11.7
Cambodia 942 -0.1 17.1 791 16.0
USA 2,603 -2.8 95.7 2,311 27.5
Germany 3,287 -4.7
An update on export performance
Export prices of fiber and yarn tend to decrease
According to statistics from the General Department of Customs, Vietnam's exports of textile
fibers and yarns in May 2022 reached 136.4 thousand tons, with a turnover of $439.07 million,
down 6.7% in volume and down 9.9% in turnover compared to April 2022; down 18.3% in
volume and 7.1% in turnover compared to May 2021. In the first 5 months of 2022, Vietnam's
exports of textile fibers and yarns reached 722.95 thousand tons with a turnover of 2.373 billion
USD, down 11.3% in volume but up 10% in turnover over the same period last year 2021.

Page | 23
Vietnam’s export fiber and yarn in 2021-2022 (million USD)
In terms of prices: Vietnam's export prices of fiber and yarn in the first months of 2022, although
still higher than those of the same period in 2021, are showing signs of cooling down.
Specifically, the average export price of Vietnam's fiber sand yarn in May 2022 reached
$3,218/ton, down 3.4% compared to April 2022, but up 13.7% compared to May. 2021.
Generally, in the first 5 months of 2022, the average export price of Vietnam's fiber and yarn
reached $3,283 per ton, up 24.1% over the same period in 2021.
Thus, following the downward trend in world cotton prices due to reduced demand, the export
price of Vietnam's fiber and yarn will continue to decline. It is estimated that the export price of
Vietnam's textile fibers and yarns in June 2022 will reach 3,019 USD/ton, down 6.2% compared
to May 2022, but still up 6% compared to June 2021.
Export price of fiber and yarn 2021-2022 (USD/ton)
Regarding export markets: Vietnam mainly exports fiber and yarn to China in the first 5 months
of 2022, accounting for 47.43% of the total volume and 49.28% of the total export turnover of
this commodity, down from 54.15% by volume and 54.04% by turnover of the first 5 months of
2021.

Page | 24
In contrast, Vietnam's exports of fiber and yarn to some markets still increased sharply in the
first 5 months of 2022 compared to the same period in 2021 such as the US, up 65.1% in volume
and 112.8 % of turnover; the Philippines increased by 230.5% in volume and 373.5% in value.
Vietnam's export fiber and yarn in May 2022
Importer
5M2022 Compared to
5M2021
(%)
Proportion in
5M2022 (%)
Proportion in
5M2021 (%)
Qty
(ton)
Value
(1,000 USD)
Qty Value Qty Value Qty Value
Total 722,950 2,373,139 -11.3 10.0 100.00 100.00 100.00 100.00
China 342,929 1,169,376 -22.3 0.3 47.43 49.28 54.15 54.04
Korea 63,149 230,144 -17.0 3.9 8.73 9.70 9.33 10.27
USA 62,205 97,912 65.1 112.8 8.60 4.13 4.62 2.13
Taiwan 20,623 75,294 -18.2 3.4 2.85 3.17 3.09 3.38
Bangladesh 19,669 103,515 72.1 53.4 2.72 4.36 1.40 3.13
Indonesia 17,490 64,685 30.8 37.6 2.42 2.73 1.64 2.18
Thailand 16,018 55,748 27.6 48.5 2.22 2.35 1.54 1.74
Japan 15,569 49,037 3.8 35.7 2.15 2.07 1.84 1.68
India 13,057 39,552 25.1 40.5 1.81 1.67 1.28 1.31
Turkey 11,485 41,735 -1.8 -11.9 1.59 1.76 1.43 2.20
Philippines 10,996 33,068 230.5 373.5 1.52 1.39 0.41 0.32
Brazil 9,893 19,018 -53.7 -58.7 1.37 0.80 2.62 2.14
Pakistan 9,582 44,220 -34.7 5.5 1.33 1.86 1.80 1.94
Cambodia 8,734 35,407 -5.7 7.5 1.21 1.49 1.14 1.53
UK 8,592 9,756 -21.2 2.6 1.19 0.41 1.34 0.44
Colombia 7,723 27,759 -20.7 -0.9 1.07 1.17 1.19 1.30
Malaysia 6,302 22,561 -39.1 -28.4 0.87 0.95 1.27 1.46
Egypt 6,105 20,886 1.4 23.1 0.84 0.88 0.74 0.79
Peru 4,999 13,958 56.1 100.9 0.69 0.59 0.39 0.32
Romania 4,301 18,600 75.8 118.0 0.59 0.78 0.30 0.40
Italy 3,394 20,134 19.3 63.7 0.47 0.85 0.35 0.57
Sri Lanka 2,796 18,817 -22.0 -3.1 0.39 0.79 0.44 0.90
Chile 2,079 6,664 34.1 108.9 0.29 0.28 0.19 0.15
Hong Kong 1,110 6,638 -78.9 -67.8 0.15 0.28 0.65 0.96
Cotton Outlook Jul-2022
Recent volatility was not limited to the cotton market. A wide range of commodities lost
significant value in June. Between June 9th and July 5th (dates chosen unsystematically to
describe the magnitude of declines), cotton fell -25% (NY/ICE December futures), corn fell -
19% (Chicago Board of Trade, December contract), soybeans fell -17% (Chicago Board of Trade,

Page | 25
November contract), wheat fell -25% (Chicago Board of Trade, December contract), copper fell
-20% (London Metal Exchange, nearby), and Brent crude oil fell -12% (ICE, nearby).
The breadth of losses throughout the commodity sector suggests a sea change in investor
sentiment for the entire category. The effects of inflation, the withdrawal of stimulus, rising
interest rates, and concerns about a possible recession could all be reasons explaining a reversal
of speculative bets, and all could be contributors to the losses. While the macroeconomic
environment can be expected to continue to weigh on prices, there are also supportive forces
for the market that are specific to cotton.
The current USDA forecast for U.S. cotton production is 15.5 million bales, and it may get smaller
over time because of the severe drought in West Texas. The current harvest figure is two million
bales lower than the 2021/22 number and is equal to the five-year average for U.S. cotton
exports (2017/18-2021/22). On top of exports, the U.S. will need to supply domestic mills with
2.5 million bales. The last time the U.S. had a severely drought-impacted crop (2020/21), the
harvest was only 14.6 million bales. In that crop year, the U.S. was able to export more than it
grew because it had accumulated stocks in the previous year. The U.S. is coming into the
2022/23 crop year with low stocks. This suggests U.S. shipments may have been rationed. Since
the U.S. is the world’s largest exporter, this may lend some support to prices internationally.
6.0
6.0 3.4
2.6
2.8
1.3
0.9
1.2
0.7
0.3
0.3 0.3 0.3
8.2
5.4
0.5
1.9
0.7
2.4
1.9
1.9 1.5
0.6
0.5
0.4 0.2
0.8
3
1.6
2
0.1
1.3
0.3 0.3 0.3
0.2
0.2
2.2
0.4
1
1.1
1.1
1.9 1.6
0.5
0.2
0.1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Million
metric
tons
World Cotton Market Outlook 2022/2023
Update forecast for Jul 2022
Production Consumption Exports Imports

Page | 26
Source
All data are accurate, relevant and verified from sources: the Ministry of Industry and Trade,
General Department of Vietnam Customs, General Statistics Office of Vietnam, International Trade
Center, Cotton Incorporated and other reliable sources.
This text provides general information. VCOSA assumes no liability for the information given being
complete or correct. Due to varying update cycles, statistics can display more up-to-date data than
referenced in the text.
Reference from Newspapers
China’s PSF exports increase while imports decline in May 2022
Fashionating world
Jul 12, 2022
In May 2022, China’s PSF exports increased 24.4 per cent Y-o-Y and 0.8 per cent M-o-M to
90,000 tons. Imports declined 44.4 per cent Y-o-Y and 8.5 per cent M-o-M to 6,500 tons.
However, in the first five months of 2022, exports declined by 4.6 per cent Y-o-Y to 19,200 tons,
says a CCF Group report.
China gave inadequate orders for export of recycled PSF in the first half of 2022 imports from
Southeast Asia and Africa increased. China’s imports were impacted by supply recovery in the
overseas orders. China’s PSF imports declined by 51 per cent to 38,900 tons during January-
May 2022 compared to the same period last years. China’s PSF imports from Myanmar declined
sharply in 2020. In 2021, imports were mainly impacted by the epidemic and February 1 coup.
China imported only 378 tons of 2021 while in 2022 it has not imported any PSF till now.
Imports from Vietnam decline 77.4%
Imports from Vietnam in 2018 had grown to 13,113 tons and reached 30,567 tons in 2021. The
increase was mainly attributed to demand recovery, larger price spread between virgin PSF and
recycled PSF and speculative demand around the Lunar New Year. In 2020, a few new plants
engaged in solid re-PSF became operational, with a capacity of 50 tons per day, and the products
are mainly delivered to China. This helped China’s imports from Vietnam to rise higher Year-
on-Year.
In September 2021, imports totaled 729 tons, however, in October it declined to lowest 459
tons, due to strict lock-down measures. Later, with epidemic control and relaxation of power
rationing, imports climbed to nearly 2,000 tons in November-December, 2021. Affected by
surging sea freight, China-origin cheap fibers were hard to sell to Vietnam. From January, 2022,
imports from Vietnam reduced largely, lower than the same period in previous years. In
January-May, 2022, imports from Vietnam declined 77.4 per cent Y-o-Y to 4,106 tons.

Page | 27
Imports from Thailand, Cambodia dip
China’s imports from Thailand tripled in 2019 to 45,000 tons compared to 2016. In 2020,
imports declined to 42,127 tons, and in 2021 they further declined to 31,996 tons. In January-
May, 2022, imports were 8,950 tons.
In 2021, the imports from Cambodia were 1,261 tons. In January-May, 2022, they declined to
542 tons. Imports from Southeast Asia have been on the decline from 98,390 tons in 2019 to
78,779 tons in 2020, 76,245 tons in 2021 and 17,298 tons in January-May, 2022.
Imports from Africa rise
Interestingly, China’s PSF imports from the African market have been gradually rising in recent
years. In 2018-2019, China transferred a few domestic production lines to Africa. This helped
boost PSF exports to China. In 2020, China’s PSF imports from South Africa and Nigeria grew
28 per cent. But, in 2021, imports from South Africa shrank sharply affected by the riots, which
caused disruptions of plant operation. Imports from Nigeria reached 2,728 tons in March’21.
But imports from Africa were nil in the fourth quarter of 2021. In 2022, China imported only
455 tons of PSF from Uganda.
China’s June Cotton Yarn Imports Down 17.6% MoM
Textile Excellence
Jul 15, 2022
Imported cotton yarn arrivals to China
According to May export data of major cotton yarn import origins and initial research of cotton
yarn arrivals of China, June cotton yarn imports of China is estimated at 102.5kt, down 30.08%
on the year and down 17.6% on the month. The orders were mostly placed in mid- to late March
and delivered in May, with a few deliveries delayed to June. After mid- to late March, as
international cotton price moved up further and the exchange rate of US dollar against RMB
ascended, many traders reduced or cancelled ordering plans temporarily, so June arrivals of
imported cotton yarn will be much less than May ones.

Page | 28
Vietnam was the largest supplier of cotton yarn to China. Vietnam’s total cotton yarn exports
were to the tune of 140 kt, of which 60kt found its way into China, down 17.8% MoM. India’s
cotton yarn exports to China were at a record low of 1200 MT. Exports from India were
impacted due to the skyrocketing cotton prices in April. Pakistan’s exports of cotton yarn to
China in June are estimated at 13KT. Similar quantity of yarn was also imported from
Uzbekistan. Uzbekistan is becoming an important supplier to China, as quality of its yarn
improves consistently.
Imported cotton yarn stocks
Currently, it is estimated that China has around 80KT of imported cotton yarn stocks. However,
imports could be lower in the coming months due to a number of reasons. Lower prices of
Chinese cotton yarns have squeezed the market for imported yarns. Moreover, Chinese
exporters expect autumn and winter textile and apparel orders to be reduced, hindering trade
and the market for cotton yarns.
Weaving operating rates are down
The operating rate of weavers mainly using imported cotton yarn has been revising down since
June. Despite eased control on the pandemic, the shrinkage of export orders in the first half year
and the sharp contraction of apparel consumption in China’s local market toughened the
operation of downstream fabric mills. In the future, the sales of imported cotton yarn may face
challenges. Take Lanxi as an example. The inventory of local fabric mills has averaged at over
two months, and still in accumulation. If the inventory is consumed at a low speed later and
restrains the demand for cotton yarn, the shortage of orders will spread all around. As the peak
of electricity usage comes, downstream weavers increasingly cut or suspend production.

Page | 29
US cotton futures experienced sharp decline in past month: Cotton Inc
F2F
Jul 13, 2022
Financial markets continued to be volatile over the past month. Following drops in stocks and
cryptocurrencies, commodity prices became the latest broadly defined sector to suffer steep
losses and cotton futures were among the commodities that experienced sharp declines. The
nearby July contract lost 30 per cent, while the December futures contract (reflective of post-
harvest price expectations) fell 25 per cent.
Given that a wide range of other agricultural and industrial commodities suffered simultaneous
losses, the decline in cotton prices can be considered as part of a general pullback in commodity
investment rather than a reflection of any specific concern about weakness in demand or
oversupply of cotton, according to Cotton Incorporated’s Executive Cotton Update.
It is estimated that around 75 per cent of downstream demand for cotton flows into apparel
and that another 20 per cent is devoted to home textiles. Prices for food and energy have risen
10 per cent or more just in the past twelve months. While there have been year-over-year
increases in clothing prices (near 5 per cent most recently), the CPI for apparel remains near
pre-COVID levels (up only about 1 per cent versus the average for 2019 in May). As a result, the
greater threat to US apparel spending may come from consumers being pinched by price
increases from other spending categories rather than from a rise in apparel costs.
Policy responses to inflation may be another source of concern for apparel and fibre demand.
Comments made during the latest meeting held by the Federal Reserve led observers to believe
that interest rates will continue to rise by at least one-half of a percentage point in late July.
However, these comments were accompanied by statements expressing concern about the
implications for economic growth. In eight of the last nine periods of monetary tightening, the
US slipped into recession. However, not all recessions are as severe as the financial crisis or the
one provoked by COVID. Among the factors that could support US consumer demand in future
months include a strong labour market, solid wage growth, and the surge in wealth that came
with stimulus after COVID.
India and China Lead 2022/23 Global Cotton Production Forecast
USDA
Jul 14, 2022
The latest U.S. Department of Agriculture (USDA) cotton projections for 2022/23 (August-July)
indicate that global cotton production is forecast 3 percent higher than the year before, the
result of increased harvested area. World cotton production is projected at 120.1 million bales
in 2022/23, with the top 4 producers contributing 70 percent of the total. India and China are

Page | 30
each expected to produce 27.5 million bales in 2022/23, with the United States and Brazil
accounting for an additional 15.5 million bales and 13 million bales, respectively.
World cotton mill use is projected marginally higher at 119.9 million bales in 2022/23, the sixth
highest on record. Global cotton trade is forecast to expand to 46.4 million bales, with gains for
Brazil and Australia more than offsetting declines for the United States and India. With world
cotton production and mill use approximately balanced in 2022/23, stocks and the global
stocks-to-use ratio are nearly unchanged from 2021/22. As a result, above-average prices are
expected to continue into 2022/23.
World Cotton Production To Increase in 2022/23
USDA
Jul 14, 2022
Global cotton production in 2022/23 is projected at 120.1 million bales, 3 percent (3.9 million
bales) above the previous year and its highest in 5 years. In 2022/23, cotton production
prospects for most major-producing countries are for larger crops, with the United States the
notable exception. World cotton harvested area is forecast at 33.3 million hectares (82.3 million
acres), approximately 3 percent above 2021/22’s 32.3 million hectares (79.7 million acres),
which was one of the lowest of the last 5 years. The harvested area increase is largely
attributable to India and Pakistan, as abandonment in the United States is expected to reduce
harvested area by 17 percent. The 2022/23 global cotton yield is forecast at 785 kilograms (kg)
per hectare (700 pounds per acre), marginally above the 2021/22 yield.
World cotton production is concentrated among a few countries, with the top 4 countries
accounting for 70 percent of total production in 2022/23, similar to the previous season. India
and China—with identical crop forecasts—are expected to be the leading cotton producers in

Page | 31
2022/23, each accounting for 23 percent of the global total. India is projected to produce 27.5
million bales of cotton in 2022/23, 12 percent (3 million bales) above the previous year. A
rebound in area to 13.2 million hectares and a slightly higher yield expectation (454 kg per
hectare) are projected to raise India’s crop to near the 2020/21 level. While China’s 2022/23
cotton crop is also forecast at 27.5 million bales, the expected gains are considerably smaller.
Production is forecast 2 percent higher (500,000 bales) than 2021/22, as area is expected to
rise slightly with a marginal gain in yield. China’s national yield reached a record (1,976 kg per
hectare) in 2020/21 as excellent crop conditions prevailed in the high-yielding Xinjiang region.
Subsequently, the yield declined 4 percent in 2021/22 and is projected to remain near that level
in 2022/23, at 1,901 kg per hectare, with area forecast at 3.15 million hectares.
Production gains are also projected for Brazil and Pakistan, while Australia’s crop is expected
to remain flat in 2022/23. Cotton production in Brazil is forecast at 13 million bales for
2022/23, nearly 6 percent (700,000 bales) higher than 2021/22. The larger crop projection is
the result of a rebound in yield, as area planted—which will largely occur in January—is
expected to remain near the 2021/22 level of 1.6 million hectares. Brazil’s yield is forecast at
1,769 kg per hectare in 2022/23, the second highest behind 2019/20’s record of 1,802 kg per
hectare. For Pakistan, the 2022/23 cotton crop is forecast at 6.2 million bales (+200,000 bales),
as a rebound in area to 2.2 million hectares more than offsets a decline in yield—which has
varied considerably in recent years—to 614 kg per hectare. For Australia, cotton production is
forecast unchanged at 5.5 million bales in 2022/23, as adequate irrigation supplies appear
readily available for the upcoming season. Area is forecast at 550,000 hectares, while yield is
projected at 2,177 kg per hectare.

Page | 32
Global Cotton Mill Use Flat in 2022/23, World Trade and Stocks To Rise
USDA
Jul 14, 2022
World cotton mill use estimates decreased in July for both 2022/23 and 2021/22 as the global
economy slows, including consumer demand for cotton textile and apparel products. World
cotton mill use for 2022/23 is forecast at 119.9 million bales, marginally above the revised
2021/22 estimate of 119.8 million bales.
Given the uncertainties about the global economy, mill use for the major cotton-spinning
countries is forecast to vary in 2022/23 . China is expected to continue as the largest mill user
of cotton as it remains a key exporter of cotton apparel products. China is forecast to account
for 31 percent (37.5 million bales) of global cotton mill use in 2022/23. India’s mill use, on the
other hand, is projected to decline 2 percent (500,000 bales) to 25 million bales and contribute
21 percent of the global total in 2022/23. In Pakistan, cotton mill use is expected to reach 11.1
million bales in 2022/23, 2 percent or 200,000 bales above the year before. Meanwhile,
Bangladesh and Turkey are each forecast to use 8.6 million bales in 2022/23, with Bangladesh
reaching a new record and Turkey matching last season’s record.
Global cotton trade in 2022/23 is projected at 46.4 million bales, about 5.5 percent above
2021/22 but below 2020/21’s record of 48.5 million bales. Total trade is forecast nearly 2.5
million bales higher, led by gains for Australia, Brazil, and Mali, where additional supplies are
likely to support exports. Shipments from Brazil and Australia in 2022/23 are forecast at 9.3
million bales (+1.4 million bales) and 6 million bales (+2 million bales), respectively, while
Mali’s cotton exports are projected to increase 300,000 bales to 1.4 million. Somewhat

Page | 33
offsetting these gains are export reductions for the United States and India, where 2022/23
cotton exports are forecast at 14 million bales (-750,000 bales) and 3.7 million bales (-300,000
bales), respectively.
The higher world cotton import projection is largely the result of increased imports by several
leading importers, including China, Bangladesh, Vietnam, and Pakistan. Raw cotton imports by
China in 2022/23 are forecast at 10 million bales, 1.8 million bales (22 percent) above 2021/22
and one of the highest import levels in recent years. For Bangladesh and Vietnam, 2022/23
imports are projected at 8.5 million bales (+6 percent) and 7.2 million bales (+6 percent),
respectively, with each country near its 2020/21 record. Pakistan’s cotton imports are forecast
at 5 million bales (+500,000 bales) for 2022/23, supporting its mill use expansion.
World cotton ending stocks are forecast at 84.3 million bales in 2022/23, only 200,000 bales
above 2021/22, as global production and mill use are projected at similar levels. Stocks are
expected to remain at one of their lowest levels since 2018/19, with the decrease anticipated
for the United States (-1 million bales) nearly offsetting increases expected for Brazil (+515,000
bales) and India (+500,000 bales). Stocks in China are forecast at 37.3 million bales for 2022/23,
similar to the year before. China and Brazil hold the most cotton stocks, accounting for 44
percent and 15 percent, respectively. Like stocks, the 2022/23 stocks-to-use ratio is forecast to
remain stable at 70 percent and continue to support price expectations. The world cotton price
(A-Index) is expected to average near 120 cents per pound in 2022/23, compared with the
2021/22 estimate near 130 cents per pound.

VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 07/2022 ISSUE

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 07/2022 ISSUE

Ähnlich wie VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 07/2022 ISSUE (20)

Mehr von Vietnam Cotton & Spinning Association

Mehr von Vietnam Cotton & Spinning Association (14)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 07/2022 ISSUE