Rayon yarn export of China posts a 35% y-o-y decline in Jan-Sep

According to customs data, rayon yarn export of China increased by 2% month on month but fell by 52% year on year to 6.415kt in Sep. Among them, the export of single yarn was 6.415kt, with a year-on-year decline of 56% and month-on-month reduction of 1%, and that of ply yarn was 1.436kt, with a year-on-year reduction of 18% but a month-on-month increase of 13%. In Jan-Sep, the exports decreased by 35% year on year to 70.774kt.

In Sep, the export of rayon yarn to the five major countries (Brazil, Bangladesh, Pakistan, India, and Vietnam) was 5.589kt, with a year-on-year decrease of 62% and month-on-month decline of 7%, taking up 71% of the total, hitting 51-month low. Among the major destinations, Pakistan saw a month-on-month decline in Sep, while the rest four regions saw minor growth.

The main origins of rayon yarn in Sep were Jiangsu, Zhejiang, Fujian, Xinjiang, and Sichuan, with an export volume of 7.116kt, a year-on-year decrease of 51% but month-on-month increase of 9%, occupying 91% of the total. Among the five major origins, only Zhejiang saw a month-on-month decline, and there was stability or growth for other regions.

The export volume of rayon yarn in Sep slightly recovered on monthly basis, but much lower compared to the same period of last year, and the export to India remained extremely low. Some spinners reflected that it was mainly because of much lower prices of yarns in Indonesia and Vietnam, which was mainly caused by low feedstock costs (there was a huge price difference of VSF between Chinese and overseas markets). Such situation is expected to sustain for some time, and rayon yarn exports may keep dull.