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Vietnam's cotton imports in Oct, 2020

2020-11-19 08:20:59 CCFGroup

In October 2020, Vietnam imported 42.9kt of US cotton, a year-on-year decrease of 15.12%. Import volumes of Indian cotton were 10.5kt, a year-on-year increase of 221.75%, and that of Brazilian cotton were 31.2kt, a year-on-year decrease of 8.05%.

US cotton imports have been lower than that in Sep and the corresponding month of last year.
In October, the major import origin remained the US and its import volumes have declined month on month and year on year (proportion failed to show as the total import volumes in Oct have not updated). Import volumes of Brazilian cotton declined year on year, while rose month on month. Indian cotton imports took the third place, and import volumes increased year on year, but lowered month on month.

Cotton imports of Vietnam and unit prices in Oct, 2020
Origins Volumes (ton) Yearly change Unit price (cent/lb) Yearly change
US 42,872 -15% 71.8 -13%
Brazil 31,222 -8% 72.3 -12%
India 10,502 222% 57.4 -25%
Cote d'ivoire 2,746 -10% 68.5 -16%
Argentina 1,795 -26% 62.7 -19%
Indonesia 747 -31% 46.6 -6%
South Korea 141 -69% 67.6 -2%
Australia 76 -98% 80.3 -7%
Pakistan 49 -82% 58.3 -4%
Taiwan China 0 -100% 79.2 13%

In October 2020, Vietnam imported 42.9kt of US cotton, a year-on-year decrease of 15.12%. Import volumes of Indian cotton were 10.5kt, a year-on-year increase of 221.75%, and that of Brazilian cotton were 31.2kt, a year-on-year decrease of 8.05%.

In October, import volumes of Brazilian and Cote d'Ivoire cotton moved up month on month, while that of US, Indian and Australian cotton declined.

 

The spot profit of Vietnamese cotton yarn in October has turned positive in mid to late October from the negative profit at the beginning of the month; in the case of a two-month operation period, the profit has turned positive earlier, and the growth rate was higher. The biggest factor influencing Vietnamese cotton yarn profits to turn positive in October was the increase in the price of Vietnamese C32S for air-jet.



Operating rate of Vietnamese yarn mills recovered to 70-85% in October, and the shipment date index climbed up slowly, to around 40 days by end October. The rise of operating rate and the shipment date index is mainly attributed to the reasons below: 1. In October, inquiries from China continued, and orders were seen successively. Buying indication climbed up with improved orders. 2. Vietnamese cotton yarn prices ticked up and the profits turned from negative to positive. 3. The capital and operation pressure of spinning mills eased somewhat with improved demand and gradual consumption of inventory.



In October, the prices of Vietnamese yarn remained stable before the National Day (Oct 1-8). During the holiday, inquiries from Chinese buyers continued, and new orders increased, pushing the cotton yarn prices and buying indication up. Due to improved sales, cotton yarn inventory reduced and inventory pressure eased somewhat. As of mid-October, profits of spinners turned from negative to positive and spinners had more confidence. Later, the buying sentiment weakened, and buying indication turned lower as the cotton yarn prices have risen rapidly.



In terms of the export sales of US cotton to Vietnam, the volumes increased overall in October compared with September. In early October, the export sales have improved obviously due to better yarn sales, but later, the export sales have weakened affected by lower sentiment.

On the whole, cotton yarn sales improved in October, and prices moved up obviously in early October. Spinners also have certain confidence supported by the improved demand. However, later, cotton yarn sales weakened, new orders have decreased. Yarn prices moved lower and profits reduced. As the inventory has reduced somewhat previously, the yarn inventory pressure was not large currently. Cotton yarn prices may be weak in Vietnam.

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