Pakistani yarn imports increase in Nov

I. China's cotton yarn imports totaled 141.1kt in Nov

In recent months, China's import volume of cotton has continued to rise and gradually exceeded 300,000 tons, while the import of cotton yarn has shown a sustained downward trend. According to China customs, China imported a total of 141,100 tons of cotton yarn in Nov 2023, a decrease of 18,000 tons compared to October, but still nearly double the import volume of the same period last year. From January to November 2023, China's cumulative import volume of cotton yarn reached 1.414 million tons. The import volume in December is expected to continue the downward trend, and it is estimated that the total annual import volume will be around 1.53-1.55 million tons. The recent decline in the volume of cotton yarn arrivals is mainly due to a decrease in speculative orders, and the gradual decline of ordering profits has led to a rapid decrease in overall transaction in the domestic market. However, supplies from overseas Chinese-funded large mills back flowing to Chinese market, which are stable and large in volume, resulting in a steady decline in the overall import trend.

II China's cotton yarn imports by origin in Nov 2023

Recently, as the import volume from other cotton yarn producing regions such as India has gradually decreased, Vietnamese yarn proportion slightly rebounded to 43% in November, with a total of 60,300 tons. Pakistani cotton yarn accounted for 19% with 27,000 tons, while Indian yarn imports continued to decrease to 21,400 tons, accounting for 15% of the total. Uzbekistani yarn imports ranked fourth with 12,800 tons, accounting for 9%. The profits of imported cotton yarn has greatly declined with the devaluation of domestic spot prices, and Indian and Vietnamese yarn mills are facing long-term losses. The space for further price declines is limited, and the overall cost advantage of overseas cotton yarn has weakened. After significantly decline in prices, Pakistani yarn mills have attracted continued orders from the Chinese market, which may lead to a rebound in future Pakistani yarn imports.

III China's cotton yarn imports by structure in Nov 2023

In November, the proportion of imported uncombed single yarn 8-25s continued to decline, totaling 63,900 tons and accounting for 45.26%, which decreased by nearly 8,000 tons compared to the previous month. The proportion of uncombed single yarn 30-47s increased to 15.7%, totaling 22,000 tons, which also decreased by about 8,000 tons compared to October. Among them, Uzbekistani yarn accounted for 8,400 tons, taking the lead in imports, while Vietnamese yarn ranked second with 8,000 tons. Recently, due to continued production losses, many Chinese mainland yarn mills have reduced their production for cotton yarn 32sand shifted towards producing cotton yarn 40s and above, which has to some extent increased the demand for low-priced imported yarn 32s. In 2023, the domestic market's preference for imported combed yarn has remained high. In November, the proportion of imported combed single yarn 30-47s gradually increased to 10.66%, totaling 15,000 tons, with a decrease of only about 1,700 tons compared to October, marking a significant increase in import share compared to 2022.

IV China's cotton yarn imports by locations of importers

According to the cotton yarn imports by locations of importers, Zhejiang province has been the top in 2023, with a monthly import proportion accounting for approximately 1/4 of the total. In November, the total cotton yarn imports reached 37,200 tons, with more than 70% of the imported Bangladesh yarn registered in Zhejiang province, excluding Vietnamese and Pakistani yarn. Fujian province has shown significant growth in imports compared to last year, with import volumes in November reaching a level on par with Zhejiang province at 35,400 tons. The cumulative import proportion from January to November is around 23%.

Guangdong province has also seen an increasing trend in cotton yarn imports in the second half of 2023, with a total import volume of 20,000 tons in November, mainly consisting of Vietnamese knitted yarn and Pakistani yarn. Other regions such as Shanghai, Beijing, and Tianjin have experienced a significant decrease in import share compared to the previous period, with overall ordering tending towards medium and large sized trade and letter of credit companies in Zhejiang, Fujian, Guangdong, and other regions.