Spinning Sector Overview

SPINNING | WORLD COTTON DYNAMICS CONSUMPTION & ENDING STOCK PACRA World Cotton Consumption (000 MT) • Total world cotton consumption stood at ~22mln MT in FY20, showing a negative CAGR of ~2.5% since FY 16. Country FY16 FY17 FY18 FY19 FY20 China 7,838 8,382 8,927 8,600 7,185 India 5,389 5,302 5,258 5,225 4,355 • China & India are two of the largest cotton consumers in the world, representing ~52% of total world consumption. Pakistan 2,243 2,243 2,373 2,330 1,960 Bangladesh 1,372 1,481 1,633 1,611 1,350 Turkey 1,459 1,426 1,622 1,502 1,393 Vietnam 980 1,176 1,437 1,524 1,328 • Despite low contribution in world output, Pakistan stands as the third largest Rest of cotton consumer and consumes ~9% of total output. 5,374 5,280 5,475 5,407 4,779 World Total 24,655 25,290 26,725 26,199 22,350 • The world held ~22mln. MT of cotton as at June 20. • China & India hold ~56% of the world's cotton inventory. Country FY17 World Cotton Ending Stocks (000 MT) FY16 FY18 FY19 FY20 China 12,345 9,998 8,272 7,766 8,109 • China has steadily reduced its cotton inventory since FY16. On the contrary, India 1,534 1,716 2,009 2,028 4,140 Brazil 1,243 1,509 1,885 2,668 3,022 India & Brazil have significantly increased their holdings. United 827 599 914 1,056 1,589 States • Pakistan's cotton stock remained relatively stable over the last few years. Pakistan 569 504 616 543 630 Rest of 3,118 3,149 3,922 3,460 4,404 World Total 19,636 17,475 17,618 17,521 21,894 10 Source: USDA, Trade Map

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