Cotton linter import of China down 17 pct in 2020

Cotton linter import of China in 2018 hit the lowest in recent years, but improved in 2019. In 2020, the import volume decreased again, but still higher than that of 2018. According to customs data. cotton linter import of Chinese mainland totaled 73.225kt in 2020, down 17% year on year. The import price averaged at $343.33/mt, up $1.09/mt or 0.32% from 2019.

The decrease of import volume was caused by less demand resulting from the COVID-19 outbreak, while the rising import price was owing to sharp reduction of Indian linters while much more linters imported from the US.

China imported cotton linter from 11 countries (regions) in 2020, representing a reduction of 1 compared with 2019. The proportion of the top three origins changed as Brazil overtook India for the first time. Brazil, India and Turkey ranked the top three places.

The great escalation of the Sino-Indian border disputes in 2020 and the shrinking demand of cotton linter for staple-grade CLP in China had led to a significant drop in cotton linter import from India. In 2020, China imported 15.5kt of cotton linter from India, down 58% year on year and the proportion of Indian linter fell to 21%. The import volume of Brazilian cotton linter soared by virtue of high price-performance ratio, with the proportion rising to around 30%. Cotton linter import from the US recovered substantially due to the phase-one trade agreement between China and US as well as the exemption of the additional tariffs. China imported 11.5kt of cotton linter from US in 2020, up 423% year on year. The proportion of US ranked the fourth place among the origins.

In 2021, cotton linter import of China is likely to increase because cotton seed price has been high in recent years, and cotton linter output remains low resulting from less enthusiasm for processing cotton by-products. The supply gap needs to be filled by imports. The survival space of cotton linter pulp is squeezed by dissolving pulp due to cost pressure and product substitution, but there is still inelastic demand for cotton linter in consideration of price-performance ratio, yield and quality.