Vietnam imported 141.2kt of cotton in April, 2020, basically flat from a year ago, but down 12% from previous month. In the first four months of 2020, imports totaled 533.8kt, up 2.6% year on year.
Proportion of cotton imports from US stays flat
In terms of import origins, the major supplier in April is the United States, with a proportion of 66%. Brazilian cotton imports took the second place, with a share of 22%. Indian cotton and Australian cotton imports accounted for 3% and 2% respectively.
In April 2020, Vietnam imported 92.4kt of US cotton, down 8% year on year, 31.5kt of Brazilian cotton, up 141% year on year, and 3.6kt of Indian cotton, down 53% year on year.
In April, spot profits of Vietnamese cotton yarn were negative, and the losses continued to enlarge. And operating rate of spinning mills in Vietnam held flat at around 30% since April, down obviously from the corresponding period of previous years.
In May, inquiries for Vietnamese cotton yarn from export market increased somewhat, and transactions are concluded, but contract cancellation is also seen. The overall demand remains weak. In early and mid-May, spinning mills mainly sell with deficits, and only a few large plants saw faster sales. The weekly transactions of US cotton from Vietnam rebound somewhat, as ICE cotton futures market moves downward and with price edge, Vietnamese spinners purchase some to replenish feedstock. In late May, cotton yarn sales remain unfavorable, and selling pressure is still large for spinners.
If there are no continual orders later, spinners in Vietnam may continue to show weak buying interests on cotton.