MERCOSUR: Cotton Lint Market 2024

Cotton Lint Market Size in MERCOSUR

In 2022, after two years of decline, there was significant growth in the MERCOSUR cotton lint market, when its value increased by 26% to $X. In general, consumption recorded a relatively flat trend pattern. The level of consumption peaked at $X in 2019; however, from 2020 to 2022, consumption failed to regain momentum.

Cotton Lint Production in MERCOSUR

In value terms, cotton lint production dropped modestly to $X in 2022 estimated in export price. Over the period under review, production saw a slight expansion. The most prominent rate of growth was recorded in 2018 when the production volume increased by 36%. Over the period under review, production hit record highs at $X in 2019; however, from 2020 to 2022, production remained at a lower figure.

Brazil (X tons) remains the largest cotton lint producing country in MERCOSUR, accounting for 85% of total volume. Moreover, cotton lint production in Brazil exceeded the figures recorded by the second-largest producer, Argentina (X tons), sixfold.

From 2012 to 2022, the average annual rate of growth in terms of volume in Brazil stood at +1.6%.

In 2022, the average yield of cotton lint in MERCOSUR soared to X tons per ha, increasing by 24% compared with 2021. The yield figure increased at an average annual rate of +2.0% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The level of yield peaked at X tons per ha in 2020; however, from 2021 to 2022, the yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, the total area harvested in terms of cotton lint production in MERCOSUR expanded markedly to X ha, with an increase of 7.4% against 2021. In general, the harvested area, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 when the harvested area increased by 32% against the previous year. The level of harvested area peaked at X ha in 2020; however, from 2021 to 2022, the harvested area stood at a somewhat lower figure.

Cotton Lint Exports

Exports in MERCOSUR

In 2022, overseas shipments of cotton lint decreased by -10.8% to X tons, falling for the second consecutive year after four years of growth. Overall, exports, however, recorded a strong increase. The most prominent rate of growth was recorded in 2019 with an increase of 58%. Over the period under review, the exports hit record highs at X tons in 2020; however, from 2021 to 2022, the exports stood at a somewhat lower figure.

In value terms, cotton lint exports rose notably to $X in 2022. In general, exports, however, posted a resilient expansion. The pace of growth was the most pronounced in 2019 with an increase of 49%. The level of export peaked in 2022 and is likely to see gradual growth in the immediate term.

Exports by Country

Brazil dominates exports structure, finishing at X tons, which was approx. 94% of total exports in 2022. It was distantly followed by Argentina (X tons), making up a 5.2% share of total exports.

Brazil was also the fastest-growing in terms of the cotton lint exports, with a CAGR of +5.5% from 2012 to 2022. At the same time, Argentina (+2.3%) displayed positive paces of growth. Brazil (+3.7 p.p.) significantly strengthened its position in terms of the total exports, while Argentina saw its share reduced by -1.6% from 2012 to 2022, respectively.

In value terms, Brazil ($X) remains the largest cotton lint supplier in MERCOSUR, comprising 95% of total exports. The second position in the ranking was taken by Argentina ($X), with a 4.5% share of total exports.

In Brazil, cotton lint exports increased at an average annual rate of +5.7% over the period from 2012-2022.

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per ton, picking up by 21% against the previous year. In general, the export price saw a relatively flat trend pattern. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

Average prices varied noticeably amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Brazil ($X per ton), while Argentina totaled $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Argentina (+2.4%).

Cotton Lint Imports

Imports in MERCOSUR

Cotton lint imports declined sharply to X tons in 2022, waning by -16.2% compared with the previous year's figure. Overall, imports recorded a perceptible decline. The pace of growth was the most pronounced in 2021 when imports increased by 40% against the previous year. The volume of import peaked at X tons in 2014; however, from 2015 to 2022, imports stood at a somewhat lower figure.

In value terms, cotton lint imports fell markedly to $X in 2022. In general, imports saw a deep downturn. The most prominent rate of growth was recorded in 2021 when imports increased by 76%. Over the period under review, imports reached the maximum at $X in 2014; however, from 2015 to 2022, imports failed to regain momentum.

Imports by Country

Peru was the largest importing country with an import of around X tons, which accounted for 60% of total imports. Colombia (X tons) took a 22% share (based on physical terms) of total imports, which put it in second place, followed by Ecuador (11%). Brazil (X tons) and Venezuela (X tons) held a relatively small share of total imports.

Peru was also the fastest-growing in terms of the cotton lint imports, with a CAGR of -1.4% from 2012 to 2022. Brazil (-2.7%), Ecuador (-3.5%), Colombia (-5.1%) and Venezuela (-9.2%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Peru increased by +13 percentage points. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Peru ($X) constitutes the largest market for imported cotton lint in MERCOSUR, comprising 63% of total imports. The second position in the ranking was taken by Colombia ($X), with an 18% share of total imports. It was followed by Ecuador, with an 11% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Peru stood at -4.2%. The remaining importing countries recorded the following average annual rates of imports growth: Colombia (-8.8% per year) and Ecuador (-6.5% per year).

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per ton, waning by -6.8% against the previous year. In general, the import price showed a perceptible decrease. The most prominent rate of growth was recorded in 2021 an increase of 26% against the previous year. Over the period under review, import prices attained the maximum at $X per ton in 2012; however, from 2013 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Brazil ($X per ton), while Colombia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+2.1%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform