Commodity market news on March 8, 2022

SMALL INDUSTRY NEWS

WORLD'S GOODS HIGHLIGHTS DAY 08.03

World cotton prices are trading at a much higher level than in 2021, currently around $120/lbs after touching nearly $130/lbs, the highest since June 2011. Cotton prices increased due to the general uptrend of the world commodity market, in addition, the latest report of the US Department of Agriculture (USDA) said that in February cotton supply was lower than global demand. The average world cotton price in 2022 is forecast to be at least 5% higher than in 2021 as demand picks up after the pandemic and production declines slightly in India and the US.

Vietnam's exports of textile fibers and yarns in 2022 are forecast to maintain a strong growth momentum compared to 2021

According to the latest report of the Vietnam Cotton and Yarn Association (VCOSA), in general, in 2021, the country's exports of textile fibers and yarns of all kinds will reach more than 5.6 billion USD, up 50% compared to 2020 and 34 respectively. % compared to 2019; with an average export price of about 2,965 USD/ton, an increase of 38% over the same period in 2020. The increase in export value of textile fibers is also partly due to the increase in input material prices since the Covid-19 pandemic. 19 appeared, since then, the average export price of this item to most markets has achieved double-digit growth compared to 2020.

In the past year, textile fiber products were also mainly exported to the Chinese market (accounting for more than 53% of the total export volume of the whole year). Other major markets all experienced strong growth, including South Korea, the US, Taiwan, Bangladesh and Japan. Notably, the price of fiber exported to Hong Kong has the highest average price (5,493 USD/ton), while the export price to the US is the lowest (1,284 USD/ton).

In 2022, our country's textile fiber exports are still expected to maintain a strong growth figure like the same period last year. However, some important factors still need to be taken into account as these are the factors that directly affect the growth of the cotton industry. That is, the Covid-19 epidemic is still complicated and brings many worries to the global textile and garment supply chain; The US-China trade war is still ongoing when these two countries act as the world's largest source and demand of textiles and garments. In addition, the excessive dependence on the source of exports to China (accounting for more than 50% of textile fiber production of enterprises) also needs to be improved when our country has many other potential partners in the region such as: Hong Kong, Taiwan, Korea…