When to expect the revival of rayon yarn export?

According to customs data, rayon yarn export of China is 9.093kt in May 2023, a m-o-m decline of 7% and a y-o-y decline of 63%. Among them, the export of rayon single yarn is 8.098kt, down 0.5% m-o-m and 65% y-o-y. The export of rayon ply yarn falls by 38% m-o-m and 35% y-o-y to 995 tons. In Jan-May, the export of rayon yarn totals 48.103kt, down 44% y-o-y, which has fallen to the level of 2019.

In May, single yarn exported to the five major destinations (Brazil, Bangladesh, Pakistan, India and Vietnam) reached 6.987kt, a year-on-year decrease of 68%, accounting for 86% of the total single yarn export. Among them, Brazil ranked the top place, and the share of India rose apparently on monthly basis.

The export of rayon single yarn from major origins (Jiangsu, Zhejiang, Fujian, Xinjiang and Sichuan) totaled 7.195kt, a year-on-year decrease of 68%, taking up 89% of the total single yarn export. The percentage of Jiangsu dropped notably, while that of Fujian and Zhejiang climbed up.

The export of rayon yarn from Jan to May almost decreases by half on yearly basis, and India is the biggest market that has been lost. Combined with the continuous growth of polyester yarn exports in India, the demand may be pulled forward due to the impact of BIS certification, but consumption downgrade is also an important factor. If the consumption downgrade continues, the export volume of rayon yarn may be further suppressed.