Rayon yarn export of China declines notably in H1

According to customs data, rayon yarn export of China decreased by 25% year on year to 46.421kt in the first half of 2024. Among them, the export of single yarn was 36.996kt, with a year-on-year decline of 30%, and that of ply yarn was 9.425kt, with a year-on-year increase of 6%. The exports of rayon yarn has fallen to the level of 2020 when the COVID-19 broke out.

In Jan-Jun, the export of rayon yarn to the five major countries (Brazil, Bangladesh, South Korea, India, and Vietnam) was 39.197kt, with a year-on-year decrease of 28%. In the past two years, the export volume of rayon yarn has declined sharply, especially a steep reduction of export to India, which is mainly caused by three factors: 1. There is increasing supply of yarn in India; 2. Viscose is replaced by polyester; 3. There is higher BIS certification fee. Fortunately, the export to Pakistan and Brazil has grown to some extent.

The main origins of rayon yarn in Jan-Jun were Jiangsu, Zhejiang, Fujian, Xinjiang, and Sichuan, with an export volume of 41.513kt, a year-on-year decrease of 25%. Compared with the peak in 2022, the export of most origins saw a significant decline, except for a rise in Xinjiang. The deepest decline occurred in Fujian, which was over 80%. The largest destination of some Fujian-based enterprises was just India, so the decline was the deepest.

The export volume of rayon yarn still dropped significantly in the first half of 2024, and it has fallen to a lower level after the decrease for two consecutive years. Against the backdrop of poor demand in overseas market, the selling pressure in Chinese domestic market has increased obviously, leading to fierce competition. Among all of destinations, the export to India sees the biggest decline, which is followed by Bangladesh. The demand from Brazil and Pakistan has improved, but not enough to make up for the reduction to India. At the same time, the export of Fujian, Zhejiang and Jiangsu is under bigger pressure.