Four Asian countries block textile production and fall into crisis
Four Asian countries block textile production and fall into crisis
According to the March forecast of the U.S. Department of agriculture, the total cotton consumption of India, Pakistan, Turkey and Bangladesh in this year is 10.885 million tons, accounting for 42.3% of the world, and the import volume is 11.5 million bales, accounting for 41.5% of the world. These measures will have serious consequences, and their negative effects will last for 1-2 months.
With the continuous escalation of the global epidemic, European and American brands and retailers began to suspend or cancel orders and shipments. Manufacturing bases in India, Pakistan, Turkey and Bangladesh are in deep trouble. At present, the above four countries have entered a state of blockade, and textile production has also been temporarily suspended.
Turkey is a strong growth point of cotton consumption outside China. In 2020, its textile and clothing exports are expected to reach US $29 billion. This year, its cotton consumption is expected to be 1.589 million tons, making it the fourth largest consumer in the world. The import volume of cotton from August 2019 to January 2020 is 468200 tons, more than double the same period of the previous year, and the import volume of this year is expected to be 936000 tons. At present, the cotton trade in the country has basically stopped, and a large number of signed American Cotton (about 150000 tons across the road) and Brazilian cotton (delivered in April December) have not been shipped.
Pakistan has begun a three week blockade, with textile production and consumption all suspended. Regardless of the epidemic situation, Pakistan's cotton consumption this year is 2.35 million tons. Pakistan is an important supply source of fast fashion in the United States and the world. Before the outbreak, factories were full-scale production. Now many big brands and retailers have cancelled orders, leading to some small factories unable to pay wages and labor losses.
Bangladesh is the largest buyer of cotton in West Africa and India, and its garment export is expected to reach 33 billion US dollars in 2020. The epidemic is not serious in the country, and garment factories can produce normally. But with the outbreak of the epidemic, as of March 25, 2.58 billion US dollars of export orders have been cancelled, more than half of which are in Europe. In the short term, the cancellation of orders will continue to increase, and the failure of factories to pay wages will lead to the unemployment of workers.
Three weeks after India's accession to the state on March 25, its huge labor force will not be able to rely on, cotton farmers' field work will not be able to carry out, cotton processing will stop, cotton exports will be cancelled or postponed, and this year's cotton planting may be delayed. Domestic consumption is expected to decrease by at least 2.5 million packages.