Brazil's cotton exports to China jump many folds; not linked to US ban

20 Feb '23

2 min read

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Insights

Brazilian cotton has gained a major market share in China, even though the latter is the largest cotton producer in the world. Trade data indicates that Brazil's cotton exports have soared in value and volume over the last five years, with a sharp increase between 2017 and 2020. The increase is not linked to the US' ban on Xinjiang cotton.

Brazilian cotton has gained a major market share in China, even though the latter is the largest cotton producer in the world. Trade data indicates that Brazil’s cotton exports have soared in value and volume over the last five years, with a sharp increase between 2017 and 2020. The increase is not linked to the US’ ban on Xinjiang cotton.

Brazil exported 82.953 million kg of cotton in 2017, valued at $132.393 million. The value and volume of exports more than tripled to 302.981 million kg ($523.495 million) in 2018, and further grew to 501.725 million kg ($820.445 million) in 2019, according to Fibre2Fashion’s market insight tool TexPro.

Despite COVID-related disruptions, Brazil exported 658.752 million kg of cotton to China in 2020, valued at $1,016.738 million. However, the volume and value of exports slightly fell to 582.985 million kg ($983.141 million) in 2021, and further eased to 521.499 million kg ($1,082.756 million) in 2022, as per TexPro. Despite the decline in shipments over the last two years, the exports still increased more than three times in terms of volume and value.

The data suggests that the surge in exports from Brazil to China was not solely due to Chinese importers seeking alternative sources of cotton after the US ban on cotton originating from the Xinjiang region of China. The US banned cotton from the region in June 2022.

Fibre2Fashion News Desk (KUL)

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This according to Fibre2Fashion's Market Intelligence Tool - TexPro