In November, Vietnam's cotton textile production was 0.99 billion square meters, a year-on-year decrease of 5.39% and a month-on-month increase of 2.86%; garment production was 562 million pieces, a year-on-year decrease of 15.24% and a month-on-month increase of 1.43%.

Analysis

Vietnam's cotton textile production decreased by 5.39% year-on-year in November, and garment production fell by 15.24%, indicating significantly weak end-user demand. This may lead to reduced cotton purchases and exert downward pressure on spot prices. The slight month-on-month increase (cotton textiles up 2.86%, garments up 1.43%) shows a short-term seasonal recovery, but the magnitude is limited and cannot offset the negative impact of the significant year-on-year decline. The overall expectation of weaker demand will likely suppress cotton spot prices; it is recommended to monitor subsequent supply and demand changes.

Additionally, on December 18th, the benchmark price for raw cotton according to SunSirs was 15,146.00 RMB/ton, an increase of 1.75% compared to the beginning of the month (14,885.50 RMB/ton).