Southern Asia: Cotton Yarn Market 2022

Cotton Yarn Market Size in Southern Asia

In 2021, the South Asian cotton yarn market decreased by -5.6% to $X for the first time since 2017, thus ending a three-year rising trend. The market value increased at an average annual rate of +4.8% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market hit record highs at $X in 2020, and then shrank in the following year.

Cotton Yarn Production in Southern Asia

In value terms, cotton yarn production totaled $X in 2021 estimated in export price. The total output value increased at an average annual rate of +2.8% over the period from 2012 to 2021; however, the trend pattern remained relatively stable, with only minor fluctuations in certain years. The growth pace was the most rapid in 2013 when the production volume increased by 11%. Over the period under review, production hit record highs at $X in 2019; afterwards, it flattened through to 2021.

Cotton Yarn Exports

Exports in Southern Asia

In 2021, overseas shipments of cotton yarn were finally on the rise to reach X tons for the first time since 2018, thus ending a two-year declining trend. Overall, exports showed a relatively flat trend pattern. The growth pace was the most rapid in 2013 with an increase of 27% against the previous year. As a result, the exports attained the peak of X tons. From 2014 to 2021, the growth of the exports failed to regain momentum.

In value terms, cotton yarn exports soared to $X in 2021. Total exports indicated a slight increase from 2012 to 2021: its value increased at an average annual rate of +1.6% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the exports attained the maximum at $X in 2013; however, from 2014 to 2021, the exports failed to regain momentum.

Exports by Country

India represented the main exporting country with an export of about X tons, which finished at 76% of total exports. It was distantly followed by Pakistan (X tons), comprising a 23% share of total exports.

India was also the fastest-growing in terms of the cotton yarn exports, with a CAGR of +4.0% from 2012 to 2021. Pakistan (-6.1%) illustrated a downward trend over the same period. While the share of India (+19 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of Pakistan (-19.9 p.p.) displayed negative dynamics.

In value terms, India ($X) remains the largest cotton yarn supplier in Southern Asia, comprising 80% of total exports. The second position in the ranking was held by Pakistan ($X), with a 20% share of total exports.

From 2012 to 2021, the average annual growth rate of value in India amounted to +4.9%.

Export Prices by Country

In 2021, the export price in Southern Asia amounted to $X per ton, jumping by 38% against the previous year. Over the period under review, 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 2021, the country with the highest price was India ($X per ton), while Pakistan stood at $X per ton.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by India (+0.9%).

Cotton Yarn Imports

Imports in Southern Asia

In 2021, approx. X tons of cotton yarn were imported in Southern Asia; remaining stable against the previous year. Total imports indicated a prominent expansion from 2012 to 2021: its volume increased at an average annual rate of +5.3% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +6.5% against 2019 indices. The most prominent rate of growth was recorded in 2014 when imports increased by 25% against the previous year. Over the period under review, imports attained the peak figure at X tons in 2018; however, from 2019 to 2021, imports remained at a lower figure.

In value terms, cotton yarn imports rose significantly to $X in 2021. The total import value increased at an average annual rate of +2.6% from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2018 when imports increased by 12% against the previous year. As a result, imports attained the peak of $X. From 2019 to 2021, the growth of imports remained at a lower figure.

Imports by Country

Bangladesh prevails in imports structure, finishing at X tons, which was approx. 80% of total imports in 2021. It was distantly followed by Sri Lanka (X tons) and Pakistan (X tons), together creating a 16% share of total imports. Nepal (X tons) followed a long way behind the leaders.

From 2012 to 2021, average annual rates of growth with regard to cotton yarn imports into Bangladesh stood at +5.4%. At the same time, Pakistan (+13.4%), Nepal (+4.4%) and Sri Lanka (+2.9%) displayed positive paces of growth. Moreover, Pakistan emerged as the fastest-growing importer imported in Southern Asia, with a CAGR of +13.4% from 2012-2021. Pakistan (+3.1 p.p.) significantly strengthened its position in terms of the total imports, while Sri Lanka saw its share reduced by -2.2% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Bangladesh ($X) constitutes the largest market for imported cotton yarn in Southern Asia, comprising 74% of total imports. The second position in the ranking was taken by Sri Lanka ($X), with a 14% share of total imports. It was followed by Pakistan, with an 8.4% share.

In Bangladesh, cotton yarn imports expanded at an average annual rate of +1.9% over the period from 2012-2021. The remaining importing countries recorded the following average annual rates of imports growth: Sri Lanka (+4.5% per year) and Pakistan (+12.0% per year).

Import Prices by Country

The import price in Southern Asia stood at $X per ton in 2021, surging by 13% against the previous year. In general, the import price, however, continues to indicate a perceptible downturn. Over the period under review, import prices attained the maximum at $X per ton in 2013; however, from 2014 to 2021, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2021, the country with the highest price was Sri Lanka ($X per ton), while Nepal ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Sri Lanka (+1.5%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform

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