Sino-U.S. negotiations are about the fate of Vietnamese cotton yarn

Industry insiders in Vietnam believe that with the decline in China's cotton reserves, the market expects China to increase cotton imports, which will drive up the US cotton price. However, this will also make it difficult for Vietnamese spinning companies to reduce yarn prices. At present, Vietnamese yarn mills have already suffered losses, and there is no price advantage for yarn exports to China.　　According to the general plan of the current Sino-US negotiations, China will purchase approximately US$40-50 billion in US agricultural products in the next two years. People in the Vietnamese industry believe that if China starts to purchase U.S. cotton, the price of U.S. cotton will gradually rise, and it will be more difficult for Vietnamese yarn mills to cut prices. At present, Vietnam's yarn mills are already at a loss and are not competitive with China's cotton yarn exports. If no other buyer can be found, the Vietnamese spinning mills can only sell at a loss. Except for China, no other country can accommodate the surplus cotton yarn produced in Vietnam, India, Pakistan, Uzbekistan and other countries. These countries can only export cotton yarn to China. If China’s large imports of U.S. cotton lead to an increase in international cotton prices, China will seize the opportunity to purchase at the beginning of next year. China’s cost advantage in spinning production will be reflected, and its foreign investment in cotton yarn production will also increase, thus giving China’s cotton yarn imports To have a noticeable impact. However, if China purchases in an orderly manner as planned, the pressure on cotton yarn traders and foreign spinning mills will be reduced. Although China's imports of cotton yarn will decrease, the losses will be within control. Article Keywords: 　China-US Negotiations on Vietnamese Cotton Yarn