China's imports of Uzbekistani cotton yarn increases despite the overall decline

I. China's cotton yarn imports totaled 103.9kt in May

According to the latest customs data, China's cotton yarn imports in May 2024 dropped to around 103.9kt, a decrease of about 7,000 tons compared to Apr. The import volume showed a different trend compared to the same period last year, with a reduction of about 14,000 tons compared to May 2023. From Jan-May 2024, China's total import of cotton yarn reached 604.8kt, still higher by 110kt compared to the cumulative import volume of the same period last year.

II China's cotton yarn imports by origin in May 2024

In May, apart from Uzbekistan, there was a slight decline in the arrival volume of cotton yarn from Vietnam, Pakistan, and India compared to the previous month. Vietnamese cotton yarn arrival totaled 53.9kt, accounting for approximately 52% of the total. Uzbekistani import of cotton yarn reached 14.6kt, increasing its share to 14%. Pakistani imports decreased to 10.2kt, maintaining a share around 10%; while Indian yarn imports dropped significantly from nearly 14kt in April to 7.5kt, showing the most pronounced fluctuation. When international cotton prices initially declined, overseas yarn mills raised prices to recover their losses, except for Uzbekistani yarn which remained relatively advantageous in terms of cost and profit, leading to a relatively stable operation in import volume.

III China's cotton yarn imports by structure in May 2024

Since the beginning of this year, the Chinese market's preference for imported cotton yarn has once again shifted towards carded yarn. In May, the import share of carded single yarn 8-25s exceeded half of the total, totaling approximately 52.6kt. The share of carded single yarn below 8s also increased to 17.73%, amounting to 18.4kt. In comparison, the share of combed single yarn 8-47s decreased to 13.78%, with an import volume of only 14.3kt in May.

Vietnamese cotton yarn not only occupies the top spot in China's imported carded cotton yarn below 25s but also holds over 70% of the market share in the combed single yarn 30-47s. Due to the relatively firm Indian cotton prices, Indian yarn has lost its price advantage in the combed yarn sector, making import operations challenging due to prolonged price difference of domestic and international markets. Furthermore, the high-priced Indian combed yarn stocks imported last year are mostly facing the dilemma of selling at a loss, which has to some extent undermined the confidence of domestic traders in subsequent operations. Uzbekistan, on the other hand, continues to expand its advantage in the carded yarn 30-47s, with import volumes of ring-spun yarn in May totaling 7.74kt.

IV. China's blended cotton yarn imports in May 2024

In May 2024, China's imports of blended cotton yarn totaled around 13.6kt, showing a slight increase of over 700 tons compared to April. This increase contradicts the declining trend in cotton yarn imports. However, despite the rise in imports, the prices of imported blended yarn in the domestic spot market have significantly declined. Among the imported blended yarn in May, yarn from Vietnam accounted for a substantial 11.5kt. The three most in-demand specifications were carded yarn 8-25s (45%), combed yarn 25-30s (13.37%), and combed yarn 30-47s (13.53%). With the recent weakening of US cotton, overseas prices for imported blended yarn have also gradually decreased, prompting some domestic buyers to replenish inventory in small quantities.