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Thai Cotton Yarn Production up from Previous Year

04 April 2014
USDA Foreign Agricultural Service

THAILAND - Cotton imports in Marketing Year (MY) 2012/13 increased 19 per cent to 1.5 million bales as spinning mills experienced greater demand for cotton yarn and the Thai economy improved.

The production of cotton yarn increased 16 per cent from the previous year driven by strong demand from China.

The production of cotton fabric also increased around 8 per cent due to a significant increase in the exports of cotton fabric to neighboring countries where large Thai garment manufacturers relocated to.

Although exports of cotton yarn and fabric will likely continue trending upward in MY2013/14 and MY2014/15, the political turmoil in Thailand may undermine the recovery of the spinning mills.

Cotton-fiber spinners have already cut their capacity utilization rate to around 60 per cent in the first quarter of 2014 compared to last year’s utilization rates of 60-70 per cent.

Consequently, the import growth of raw cotton in MY2013/14 will likely decelerate to approximately 3 per cent from the previous year.

In MY2014/15 spinning capacity is likely to return to normal averages of 70-80 per cent in anticipation of economic and political recoveries.

Thus, cotton imports are forecast to increase to 1.6 – 1.7 million bales.

Further Reading

You can view the USDA GAIN: Thailand Cotton and Products Annual 2014 report by clicking here.

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