Brazilian cotton has gained a major market share in China, even though the latter is the largest cotton producer in the world. Trade data indicates that Brazil’s cotton exports have soared in value and volume over the last five years, with a sharp increase between 2017 and 2020. The increase is not linked to the US’ ban on Xinjiang cotton.
Brazil exported 82.953 mn kg of cotton in 2017, valued at $132.393 mn. The value and volume of exports more than tripled to 302.981 mn kg ($523.495 mn) in 2018, and further grew to 501.725 mn kg ($820.445) in 2019, according to market report.
Despite COVID-related disruptions, Brazil exported 658.752 mn kg of cotton to China in 2020, valued at $1,016.738 mn. However, the volume and value of exports slightly fell to 582.985 mn kg ($983.141 mn) in 2021, and further eased to 521.499 mn kg ($1,082.756 mn) in 2022, as per market report. Despite the decline in shipments over the last two years, the exports still increased more than three times in terms of volume and value.
The data suggests that the surge in exports from Brazil to China was not solely due to Chinese importers seeking alternative sources of cotton after the US ban on cotton originating from the Xinjiang region of China. The US banned cotton from the region in June 2022.
