Global Market: Bangladesh Has A Serious Backlog Of Yarn Stocks

 

According to foreign reports, due to the high inflation caused by the Russia Ukraine war, the orders of international retailers and brands declined, and Bangladesh spinners and garment manufacturers were overstocked in inventory, leading to a setback in cotton consumption and imports.

At the beginning of 2021, many brands were transferred from Vietnam, Indonesia and other competitor countries. Bangladesh began to receive more clothing purchase orders, and the clothing export volume continued until the middle of 2022. However, the Russia Ukraine war and the continued economic turmoil had a negative impact on the clothing sector. In June and July this year, clothing purchase orders in Bangladesh fell by about 20% - 30%, and many American and European brands also delayed delivery.

Bangladesh Textile Mills Association (BTMA) said that the unsold yarn inventory of 300 textile mills in Bangladesh has reached 600000 tons. If the price of a kilogram of yarn is at least $4.50, the total value of unsold yarn is $2.7 billion. As the yarn in stock is made of expensive cotton and cannot be sold at a low price, the yarn output also declined, which also affected the import of cotton.

According to the latest report of the American Agricultural Counsellor, the cotton consumption in Bangladesh in 2022/23 may decline by 11% to 8.3 million bales, and the cotton import volume may decline to 8 million bales, which is about 10% lower than the forecast in April this year.

The Bangladesh Garment Manufacturers and Exporters Association (BTMA) said that it would take several months for the current situation to return to normal. According to the report of American Agriculture Reference, the consumption of yarn and fabric in Bangladesh this year will be 1.8 million tons and 6 billion square meters, respectively, about 10% and 3.5% higher than the previous year. In 2021/22, Bangladesh's domestic raw cotton consumption is estimated to be 8.8 million bales. Texasiat