Vietnamese Cotton Yarn Is Estimated To Be 5 Million 100 Thousand Packages In 2016.

It is understood that during 2015/2016, Vietnam accounted for half of the total cotton growth in the world.

The Chinese mainland is still Vietnam's largest yarn export market, raising domestic cotton prices to make many spinning mills unable to make profits.

Because

Mainland China has increased Vietnam's cotton spun yarn to three fold growth over the past four years. It is estimated that the total consumption of the total textile mill in 2015/2016 will reach 5 million 100 thousand bales.

According to the cotton report of the US Department of agriculture USDA in January (2016), during 2015/2016,

Vietnam accounts for half of the total growth of demand.

The net yarn exports from 2011/2012 to 2015/2016 grew at an annual rate of over 40%.

Mainland China is still Vietnam's largest yarn export market, and its market share has been expanding over the past few years, accounting for 80%~90% of its total exports.

The report points out that this growth is related to the large spinning investment in China and the relocation site of wholesalers in mainland China.

The main driving force of the trend is the domestic cotton policy in mainland China, which has raised domestic cotton prices to make many spinning mills unable to make profits.

The report shows that

The consumption of cotton has grown remarkably, and has grown more than doubled since 2011/2012.

Therefore, more and more yarns are exported to mainland China, and Vietnam's role in textile value chain has also been enhanced.

As for 2015/2016, the US Department of agriculture USDA lowered the forecast of global output. Most of the plateau was due to changes in Pakistan, India and Mainland China, and there was only a slight reduction in consumption forecast.

The volume of trade has been raised to about 700 thousand packs, and output and usage in the US have been slightly reduced, but the end inventory has been raised.

With regard to the major exporters, the demand for imports from Pakistan is expected to be higher. Therefore, the volume of trade in India has increased by 500 thousand to 5 million 800 thousand, while Australia has increased by 150 thousand packs to 3 million 750 thousand due to the high volume of shipments at the end of the quarter.

Marley, a West African country, was also raised by 100 thousand packs to 1 million 200 thousand due to the strong demand for cotton in West Africa. Brazil has been increased by 100 thousand packs to 4 million 300 thousand due to recent sales.

At the same time, because of less crop harvest, Turkmenistan's trade volume dropped by 100 thousand to 1 million, while Pakistan's imports increased by 700 thousand to 2 million 700 thousand because of less crop harvest and strong demand for purchase.