Cotton fiber prices compared to the market and some information about fiber exports from Vietnam

Yarn Price Comparison

 

Ne 30/1 Cotton Carded – FOB price

  • Vietnam @2.88 $/kg
  • China @2.80 $/kg
  • India @2.77 $/kg
  • Turkey @2.70 $/kg

 

Ne 30/1 Cotton Combed – FOB price

  • Vietnam @3.40 $/kg
  • China @3.56 $/kg
  • India @2.92 $/kg

However, there are still plenty of promising signs in Vietnam’s fiber market throughout the first three quarters of 2023 and into the fourth quarter.

Vietnam stands as the world’s sixth-largest fiber exporter and the third-largest exporter of textiles and garments globally, trailing only behind China and Bangladesh.

By the conclusion of the third quarter of 2023, fiber exports have raked in a substantial $3.2 billion, marking a 9.3% increase in volume. Nevertheless, there is a 13.8% dip in value compared to the same period in 2022.

The key highlights include:

Fiber Exports to China (Vietnam’s Largest Market):

  • From January to September, Vietnam exported 647,862 tons worth $1.71 billion, reflecting an 18.1% increase in volume. However, the value dipped by 2.1% compared to 2022.
  • The export price reached $2,652 per ton, which is a 17.1% decrease compared to the same period in 2022.

Fiber Exports to Korea (Vietnam’s Second Largest Market):

  • From January to September, Vietnam exported 101,880 tons valued at $284 million, with a decrease of 5.78% in volume and 24.2% in value compared to 2022.
  • The average export price was $2,788 per ton, down by 19.65% compared to the same period in 2022.

Yarn Exports to the US Market:

  • From January to September, Vietnam exported 75,483 tons worth $108 million, marking a 13.8% decrease in volume and a 29.4% decrease in value compared to 2022.
  • The average export price stood at $1,443 per ton, which is 17.5% lower than the same period in 2022 and less than half the export price to China or Korea.

Looking ahead, the market dynamics in the fourth quarter of 2023 are showing positive shifts, particularly with the Federal Reserve’s decision not to raise interest rates. Both the US and Chinese markets are on a robust recovery path, with their Purchasing Managers Index (PMI) exceeding 50 points, surpassing initial forecasts. Moreover, in September, EU inflation receded by 4.3%, and Vietnam’s goods export turnover for the same month in 2023 surged by 4.6% in comparison to 2022.

Notably, the fiber industry is benefiting from more cost-effective cotton prices in the third and fourth quarters of 2023, which are now aligning with market prices and are lower than the rates witnessed during the first half of the year, ultimately bolstering the industry’s performance.