Cotton linter import of China further rises in Jul with a notable momentum of growth

China's cotton linter import market has performed well this year. In the first half of the year, there was a significant increase in import volume, and this trend continued into Jul with a noticeable momentum of growth. In Jul, the import from Brazil and Central Asia surged dramatically, with significant increases in regions such as Anhui and Xinjiang.

Due to the high price of Chinese cotton linter and the inertia effect from imports in the first half of the year, the import volume of cotton linter continued to grow at a high level in Jul. According to customs data, the import volume for the month was 12,385.78 tons, a month-on-month increase of 66.4% and a year-on-year increase of 7.1%. This figure was just slightly below the level in Apr, making it the second highest of the year. In Jan-Jul, the cumulative import volume was about 63,817.7 tons, marking a year-on-year increase of 48.7%.

In terms of import sources, cotton linters were imported from 12 countries and regions in Jul. Turkey took the leading position, with an import volume of 5,319.1 tons, a year-on-year decrease of 5.5%, accounting for 42.9% of the total. Turkey, Brazil, and India were the top three import markets, collectively accounting for 93.6% of the total imports, thus holding a dominant position.

The import of cotton linter from Brazil saw a substantial increase in Jul, with an import volume of about 4,666.5 tons, a year-on-year increase of 216%, taking up 37.7%. There were also noticeable increases in imports from Turkmenistan, Kyrgyzstan, and the United States. However, the import from India dropped significantly, with the import volume of 1,606.9 tons, a year-on-year decrease of 61%, accounting for 13% of the total.

Regarding destinations, cotton linters were imported by 10 provinces and municipalities in Jul. Anhui led by a wide margin, with an import volume of 3,987.4 tons for the month, a year-on-year increase of 388.4%, accounting for 32.2% of the total. Anhui, Shandong, and Jiangsu were the top three import markets, collectively accounting for 69.4% of the total imports and holding a dominant position.

Additionally, imports of cotton linter in Hebei and Xinjiang increased to varying degrees in Jul, with import volume of about 263 tons and 93.5 tons respectively, compared to zero imports in the same period last year. However, imports in Shandong saw a significant decrease, with an import volume of 2,381.1 tons in Jul, a year-on-year decrease of 31.3%, occupying 19.2% of the total.

In summary, the import volume of cotton linter in Jul saw high-level growth, second only to Apr, making it the second highest of the year. Turkish cotton linter led the import market, with a substantial increase in imports from Brazil. Anhui's imports stood out, while imports in Hebei and Xinjiang saw significant growth. However, due to the significant drop in Chinese cotton linter prices since mid-Jul and the imminent arrival of new cottonseed and cotton linter in Sep, it is expected that the import market may experience increased volatility in the future, with a trend of high early in the year and lower later.