Sino US Negotiations Are Related To Vietnamese Cotton Yarn Fate

Vietnamese industry believes that with the decline in China's reserve cotton stocks, the market is expected to increase cotton imports in China, driving up the US cotton prices. However, this will also make it difficult for Vietnamese spinning enterprises to reduce yarn prices. At present, Vietnam's cotton mill has already suffered losses, and has no price advantage for China's yarn export.

According to the current general plan of Sino US negotiations, China will purchase about 400-500 billion US dollars of agricultural products in the next two years. Vietnamese industry believes that if China starts to buy American cotton, the price of US cotton will gradually increase, and Vietnam's cotton mill will be more difficult to sell at reduced prices. At present, Vietnam's cotton mill has fallen into a loss and is not competitive with China's exported cotton yarn. If there are no other buyers, Vietnamese mills can only sell at a loss. Apart from China, no other country can accommodate surplus cotton yarn produced by Vietnam, India, Pakistan, Uzbekistan and other countries. These countries can only export cotton yarn to China.

If China imports a lot of American cotton and leads to the rise of international cotton prices, China will seize the opportunity to purchase early next year. The cost advantage of China's spinning production will be reflected, and its foreign investment in cotton yarn production will also increase, which will have a significant impact on China's cotton yarn imports. However, if China plans to purchase in a planned way, the pressure of cotton yarn traders and foreign cotton mills will be reduced. Although China's imports of cotton yarn will be reduced, the loss will be within control.