A significant increase in the concentration of China’s cotton linter import market

China's cotton linter import market performed well this year, with the volume surpassing 10kt in both Jul and Aug, and import price rising for eight consecutive months, currently at relatively high level for the year. Additionally, the concentration of origins and destinations has risen dramatically, shifting from a "three-horse title race" to a "one super power and multi-great power" landscape.

According to customs data, cotton linter import of China was 10,013.23 tons in Aug, a substantial year-on-year increase of 53.4%. The cumulative import volume from Jan to Aug reached about 73,830.9 tons, marking a year-on-year growth of 49.31%. The import volume for the first eight months of 2024 has already exceeded the total volume of 2023.

As import volume rapidly increased, prices have also risen month by month. The average import price in Aug was $477.03/mt, an increase of 18.86% year-on-year, marking eight consecutive months of price rises, and it has reached a relative peak for the year, up 32.5% from the price of Jan at $360/mt.

In terms of import origins, the concentration was high in Aug, with Turkey leading significantly, accounting for 53.2% of the total at 5,331.6 tons. Brazil ranked second with about 2,655.6 tons, taking up 26.5%. Together, these two countries accounted for nearly 80% of total imports.

Imports from other regions each accounted for less than 10%, particularly with India's share plummeting from 67.8% in Jan to 8.6% in Aug, primarily due to the decline in the production of CLP-grade cotton linter in China, while the quality and requirements of cotton linter for refined cotton and specialty cotton linter pulp have increased. Imports from the U.S. remained relatively stable, with about 544 tons in Aug, accounting for 5.4%.

Regarding the destinations, there was a significant increase in concentration in Aug. Anhui continued to take the leading position, with import volume of about 4,968.3 tons, nearly half of the total at 49.6%. Shandong came in second with about 2,453.6 tons, taking up 24.5%. The top two provinces together accounted for 74.1% of the total imports. Other regions each accounted for less than 10%, with Xinjiang experiencing significant fluctuations. Its import volume peaked in Apr at 1,213.3 tons (9.7%), but dropped below 50 tons in Aug, just occupying 0.5% of the total.

In summary, affected by changes in Chinese domestic and international market conditions and end-user demand, China's cotton linter import market has performed reasonably well this year, with Aug's import volume increasing by over 50% year-on-year and a cumulative growth of over 49% from Jan to Aug. Import prices have risen for eight consecutive months, with the average price in Aug 32.5% higher than in Jan. However, due to changes in the supply-demand structure of cotton linter market and evolving quality requirements, the concentration of import origins has increased significantly, with imports from Turkey and Brazil accounting for nearly 80% in Aug, and the combined concentration of the main destinations, Anhui and Shandong, reaching nearly 75%.