Vietnam's cotton imports down by 3.3% in Jan, 2019

Vietnam imported 139kt of cotton in Jan, 2019, down 3.3% year on year, and up 18.1%. Cotton imports are projected at 100kt in Feb, a fall of 10.2% year on year and 28.1% month on month, according to the General Statistics Office of Vietnam. Therefore, in Jan-Fen, cotton imports totaled 239kt, down 6.3% year on year.

1. Cotton imports decline year on year

In 2019, Vietnam’s textile industry development keeps high growth rate. In Jan, 2019, exports of textiles and garments reached $3.294 billion, up 32.2% year on year and 18% month on month. The export value in Feb is projected at $1.6 billion, a fall of 1.8% year on year and 51.4% month on month. The total export value in Jan-Feb is estimated at $4.894 billion, an increase of 18.76% from the same period of last year.

In Jan, 2019, cotton imports approached 139kt in Vietnam, down 3.3% year on year and up 18.1% month on month. Cotton imports are forecast to reach 100kt in Feb, down 10.2% year on year and 28.1% month on month, according to the General Statistics Office of Vietnam. In the first two months of 2019, cotton imports are estimated to amount to 239kt, down 6.3% year on year.

2. US cotton imports rise by 40% year on year, while Brazilian cotton imports lower by 48%

In Jan, the major import origins were US, India and Brazil. Brazilian cotton imports declined by 48% year on year to 19kt, as the Australian and Brazilian cotton arrivals would end soon. Indian and US cotton started to arrive, and the intensive arriving period is May-Sep.

In Jan, imports from US cotton were 65kt, up 40% year on year, that from India declined by 30.33% to 31.7kt. For Brazilian and Australian cotton, imports reached 18.9kt (-48%) and 8.5kt (65.6%) respectively.

Cotton imports of Vietnam and unit prices in Jan, 2019
Origins	Volumes (ton)	Yearly change	Monthly change	Unit price (cent/lb)
US	64,960	40%	81%	87.1
India	31,737	-30%	99%	80.9
Brazil	18,918	-48%	-29%	87.2
Australia	8,548	66%	-56%	89.9
Argentina	3,513	803%	-26%	80.7
Indonesia	1,543	295%	86%	47
Cote d'ivoire	1,401	/	6%	81.7
South Korea	345	8%	85%	74.4
Pakistan	135	/	-7%	32.4
Mainland China	73	1360%	-32%	67.7
Taiwan China	60	-32%	233%	41.6
Other	7,808	-12%	-37%	85.8

In terms of the unit price of imported cotton, the imported cotton prices declined in Jan, while the prices of Indian cotton rose. Compared with Cotlook A Index, the imported cotton prices in Vietnam lagged behind about one to two months, which was related to the booking date and shipment. In Jan, the demand of cotton yarn from China recovered for Feb and Mar shipment, and profits of Vietnamese mills started to recover as well. Demand for cotton in Vietnam is expected to rise after the Chinese Lunar New Year.