Cotton linter import of China sees triple-digit gains in Jan-May

In May, China saw a significant increase in cottonseed imports, with a month-on-month increase of over 100% and a year-on-year growth of over 200%. However, during the same period, there was some fluctuation in cotton linter imports at a high level.

The recent surge in cottonseed imports can be attributed to the high prices of Xinjiang cottonseed and downstream demand, and the import volume in May hits new highs within the year. According to customs data, China imported 23,738.25 tons of cottonseed in May 2024, representing a month-on-month increase of 133.6% and a year-on-year increase of 230.7%. The average import price for May was $348.17/mt, up 0.83% month on month but down 18.7% year on year.

The total import volume for the first five months of 2024 still declined, but the decline has narrowed rapidly. From January to May, the cumulative import volume of cottonseed was 85,281.98 tons, down by 10.5% year-on-year, with an average import price of $354.01/mt, down by 16.6% year-on-year.

In terms of import origins, China's cottonseed imports are concentrated mainly from the United States and Australia. In May, the United States accounted for 57.1% of the monthly cottonseed imports, and from January to May, it accounted for 79.4%.

Due to limited Chinese cotton linter production and high prices, China's cotton lint import market saw continuous growth from January to April. Although there was a slight decline in May, the overall trend remained relatively high, with a significant year-on-year increase. According to customs data, in May 2024, China imported approximately 9,548.27 tons of cotton lint, down by 23.4% month-on-month, but up by 44% year-on-year. The cumulative import volume from January to May was approximately 43,986.7 tons, up by 139.1% year-on-year.

In terms of origins, India dominated the monthly cotton lint imports in May, with the volume of 5,567.7 tons, up by 147% year-on-year, accounting for 58.3% of total. Brazil and the United States ranked the second and third places, with the top three countries taking up nearly 87%. In Jan-May, India continued to lead in cotton linter imports, with a cumulative volume of 25,376.3 tons, up by 344% year-on-year, accounting for 57.7%, followed by Brazil and Turkey, with the top three occupying over 84%.

In terms of destinations, Jiangsu led the imports, coupled with significant growth in Anhui and Shandong, particularly in Xinjiang, where there was a surge in imports as it serves as a distribution center for Chinese cotton linter production.

The significant increase in cottonseed imports in May and the slight decline in cotton linter imports, but with a substantial year-on-year increase, can be attributed to the high prices of Xinjiang cottonseed and the limited Chinese cotton linter production. Import sources for cottonseed are concentrated in the United States and Australia, while cotton linter is mainly sourced from India, followed by Brazil, Turkey, and the United States. It is expected that the current situation will generally be maintained before new cottonseed and linter arrives in Sep.