Eye-catching performance of China's cotton linter import market in Jan-Feb

China's cotton linter import market got off to a good start in 2024, with import volume in the first two months increasing more than threefold year-on-year. The import from India is far ahead, and that from the United States has shown a significant rebound.

According to customs data, cotton linter import of China in Feb 2024 was about 7,042.49 tons, up 22% month-on-month and a substantial 344.7% year-on-year increase. The total import volume of Jan-Feb was 12,814.1 tons, marking a 305.1% year-on-year growth.

The import volume in the first two months of 2024 increased more than threefold, partly due to the smaller import base in the same period last year. The main reason is that since the fourth quarter of 2023, Chinese cottonseed oil mills and delinting plants have been operating at limited capacity, leading to insufficient supply and high price of cotton linter in China and an increase in demand for imported cotton linter.

The average import price of cotton linter in Feb 2024 was $374.55/mt, up 4.05% month-on-month and 23.27% year-on-year, equivalent to 3,100yuan/mt in RMB terms, while the average price of cotton linter for industry-grade refined cotton in China during the same period was 4,940yuan/mt.

The average import price in Jan-Feb was $367.99/mt, marking an 8.82% year-on-year decrease, which was about 3,050/mt in RMB terms, while the average price of cotton lintner for industry-grade refined cotton during the same period was 4,865yuan/mt.

In terms of import origins, India takes the leading position again, with India, Brazil, Tanzania, and the United States ranking in the top four, accounting for nearly 96% of the total.

Due to price advantages and the demand driven by refined cotton, especially cotton linter pulp, imports from India increased significantly in 2023, reaching approximately 29,111.2 tons, a 188.4% year-on-year increase, accounting for 40.3%. This trend continued in 2024, with import from India reaching 4,760.4 tons in Feb, a 216.3% year-on-year increase, and a total of 8,671.5 tons from Jan to Feb, marking a 476.1% year-on-year growth and accounting for 67.7% of total. In contrast, due to factors such as the Sino-US relationship and demand, imports of cotton linter from the United States experienced a dramatic decline in 2023, totaling about 1,557.4 tons, an 83.1% year-on-year decrease and representing 2.2% of the total. However, there has been a significant resurgence this year, with 732.8 tons imported in Feb, an 8,051.4% year-on-year increase, and a total of 771.1 tons from Jan to Feb, marking an 8,476.8% year-on-year growth and accounting for 6% of total.

In conclusion, imports from India surged in 2023 and continued to grow rapidly this year, with a total of 8,671.5 tons imported from January to February, marking a 476.1% year-on-year increase and accounting for 67.7%. On the other hand, imports from the United States saw a sharp decline last year due to Sino-US relationship and changing demand, but have significantly rebounded this year, with a total of 771.1 tons in Jan-Feb, marking an 8,476.8% year-on-year growth and accounting for 6%. Over the years, Shandong has been leading in the import of cotton linter, while Jiangsu imported 4,942.3 tons in Jan-Feb this year, accounting for 38.6% and taking the lead.