Imported cotton yarn arrival assessed to reach 62.1kt in Jan

It is estimated that cotton yarn imports may reach 62.1kt in Jan, down about 51.64% on year

Unlike previous years, imported cotton yarn arrival this year is expected to be early and before Mar, the traditional peak month for imported cotton yarn arrivals, because of an early-coming Spring Festival. But domestic ordering has already recovered significantly after RMB appreciation last Dec, and around 62.1kt imported cotton yarn is expected to arrive in Jan. Some of the arrivals may put off to Feb and make clearance. 

Pakistani yarn imports assessed to rise

South-east Asia cotton yarn exporters saw sales driven up by procurement and stock-up from China. Foreign offers climbed up after inventory declined, and the opportunities for replenishment after Spring Festival decreased accordingly. According the latest export report released by China Customs, the monthly export of Vietnamese cotton yarn remained relatively steady, with those exporting to China floating around 30-40%, and the arrivals in Spring Festival was estimated around 36.5kt. It is noted that the operational profit of Pakistani yarn rose to 1,500yuan/mt before Spring Festival, leading to a rise in export from 12.4kt in last Nov to 17.3kt in Dec. And later arrival of Pakistani cotton yarn would probably increase by 50% to 8.5kt. Besides, monthly export of China Taiwan cotton yarn reached above 7kt, accounting for a considerable share in domestic market.

Cotton yarn arrivals after Spring Festival

Inventory of imported yarn was at a low level due to few replenishment opportunities during the second half of 2022 while traders adjusted strategy and turned to buy large amount of domestic yarn pre-Festival. The lowering offers of Indian and Vietnamese yarn since last Dec and the exchange rate advantage promoted sales. A large amount of imported cotton yarn is expected to arrive in Feb and in-transit Indian carded 16s, 21s, combed 32s, 21s is now on pre-sale. Low-cost Vietnamese siro-spun yarn has gradually made its arrival in port and more Pakistani yarn is expected to arrive at the end of the month, when inventory would increase rapidly. Spot offers were raised by around 500yuan/mt generally after Spring Festival, and despite of current replenishment for rigid-demand, the rising trend may be hindered by loose demand in the future.