Rayon yarn export of China in Jan-Feb hits 7-year low

According to customs data, rayon yarn export of China hit 7-year low of 13.182kt in Jan-Feb 2024, with a year-on-year decrease of 29%. Among them, the export of single yarn was 9.242kt, with a year-on-year decrease of 40%, and that of ply yarn was 3.94kt, with a year-on-year increase of 27%. The exports of rayon yarn have been low for consecutive five months.

In Jan-Feb, the export of rayon yarn to the five major countries (Brazil, Bangladesh, Pakistan, India, and Vietnam) was 10.709kt, with a year-on-year decrease of 32%, accounting for 84% of the total volume. The export to India fell to 7-year record low, falling by 95% from the peak.

The main origins of rayon yarn in Jan-Feb were Jiangsu, Zhejiang, Fujian, Xinjiang, and Sichuan, with an export volume of 11.984kt, a year-on-year decrease of 31%, accounting for 91% of the total export volume.

The export volume of rayon yarn in Jan-Feb has dropped significantly to hit 7-year low, which is mainly attributed by the notable decline of export to India, falling by 95% from the peak. According to the purchasing habits in the past, the customers from India would procure a large amount of yarns at relatively low prices. However, the purchasing volume was small when the yarn price was lower in Dec 2023, thus the demand of Chinese rayon yarn from India is regarded to decrease noticeably. When rayon yarn prices keep dipping without strong demand both at home and abroad, the yarn mills are under bigger selling pressure.