Vietnam imported 143.5kt of cotton in Jun, 2019, down 1.9% year on year and 1.1% month on month. In the first half year of 2019, cotton imports totaled 809.1kt, a decline of 2% year on year. Based on current growth rate, the imports may total 1.52 million tons in 2019, down 31kt from 2018.
I. Cotton imports decrease
Vietnam’s textile industry maintains the fast development with high growth rate, but the growth rate is slower compared to the corresponding period of last year, but higher than that in 2017. In Jun, textiles and garments export value reached 2.88 billion USD, up 4.9% year on year and 5.4% month on month. In the first half year of 2019, exports totaled 14.897 billion USD, up 9.1% year on year. Based on current growth rate, the export value could reach 33.2 billion USD in 2019, an increase of 2.76 billion USD from 2018.
Vietnam imported 143.5kt of cotton in Jun, 2019, down 1.9% year on year and 1.1% month on month. In the first half year of 2019, cotton imports totaled 809.1kt, a decline of 2% year on year. Based on current growth rate, the imports may total 1.52 million tons in 2019, down 31kt from 2018.
II. Monthly imports of US cotton reach a new high
In terms of import structure, the major import origins remained the US cotton in Jun, and others were still the Brazilian, Australian, India and Cote d'Ivoire cotton.US has trade dispute with Vietnam, but the situation has not escalated. Currently, the arrivals of US cotton have been in the late period of intensive arriving period. Monthly imports of US cotton reached 100kt, still to be a new high compared to the corresponding period of previous years. Indian cotton imports moved down from Jan. Imports of Brazilian and Australian cotton moved up this month.
| Cotton imports of Vietnam and unit prices in Jun, 2019 |
| Origins |
Volumes (ton) |
Yearly change |
Monthly change |
Unit price (cent/lb) |
| US |
102,889 |
26% |
-8% |
81.7 |
| Brazil |
10,012 |
285% |
101% |
84 |
| Australia |
4,560 |
-63% |
347% |
89.7 |
| India |
1,798 |
-93% |
-55% |
59.6 |
| Cote d'ivoire |
1,682 |
-55% |
-40% |
81.8 |
| Indonesia |
1,201 |
136% |
-39% |
51.6 |
| Argentina |
1,174 |
2398% |
69% |
76.9 |
| Mainland China |
1,054 |
987% |
452% |
97.5 |
| South Korea |
525 |
36% |
10% |
67.6 |
| Pakistan |
449 |
192% |
-53% |
57.9 |
| Singapore |
381 |
#N/A |
132% |
87.5 |
| Taiwan China |
37 |
-35% |
-41% |
108.5 |
| Other |
17,721 |
-2% |
8% |
82 |
In Jun, US cotton imports were 552.2kt, up 19.59% year on year, Indian cotton 80.6kt, down 51.36%, Brazilian cotton 75.2kt, down 14.88% and Australian cotton 20kt, down 9.47%. The arrivals of Australian cotton were delayed somewhat this year, as it was usually the intensive arriving period in June and July.
International cotton prices were range-bound narrowly in Jun. But for Vietnamese cotton yarn, the buying from China, the largest export destination, remained weak. In fact, Chinese cotton prices have rebound quickly in mid-Jun, and de-stocking of cotton yarn in domestic market has seen effects, but the overall inventory was still high, and fabric market saw no improvement, so traders continued to cut prices to de-stocking the Vietnamese cotton yarn at Chinese ports, and buyers showed lower interests to purchase forward cotton yarn. With higher inventory, Vietnamese yarn mills cut prices to reduce inventory. In Jun, spinners in Vietnam faced higher inventory of both feedstock and products, to have lower buying interests of cotton, so cotton imports are expected to reduce in Jul and Aug.
In end Jun and early Jul, orders of Vietnamese yarn from China began to increase, and by the week ending Jul 19, the shipment date of Vietnamese yarn is about 25 days, and sellers have intention to elevate prices. But operating rate of spinning mills in Vietnam has not improved, and cotton inventory keeps up, so the intention to purchase cotton may be low in short term.
