ABRAPA signs partnership with Chinese cotton importers

Jun, 04, 2021 Posted by Ruth Hollard

Week 202124

ABRAPA (the Brazilian cotton producers association) signed a partnership with the China National Cotton Exchange (CNCE), representing more than five thousand Chinese cotton buyers. The approach foresees joint events and the construction of an “intelligent business environment” between the countries.

Even though they are the largest cotton producers globally, the Chinese do not supply their domestic demand. In April, for example, the extra import quota reached 700,000 tons. According to the US Department of Agriculture (USDA), China produced 6.4 million tons of cotton in the 2020/21 crop, whereas demand should reach 8.6 million tons.

For the 2021/22 season, forecasts for production and demand are 5.98 million and 8.7 million tons, respectively.

See the destinations for Brazilian cotton in the chart below, according to data from DataLiner:

Main destinations of Brazilian Cotton Exports (HS 5201) | Jan to Dec 2020 | TEU

Graph source: DataLiner (click here to request a demo)


Without access to Australian cotton due to diplomatic issues, China may repeat the 2020 practice and concentrate its purchases in the USA.

However, if the projection does not materialize, Brazil will likely be an alternative supplier, says ABRAPA.


Source: Valor Econômico

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