Cotton linter import of Shandong experiences explosive growth in Nov

Due to the gradual arrival of Chinese cotton linter, the import market has seen a decline in activity since Sep, with import volume significantly decreasing. However, Shandong has maintained high level, particularly in Nov, when it stood out with a dramatic increase in the quantity.

Since the beginning of the new crop year, the overall supply has increased with the gradual availability of Chinese cotton linter, leading to a decrease in the heat of the cotton linter import market. The total import volume dropped from over 10kt per month in Jul-Aug to around 5kt per month in Sep-Nov. According to customs data, cotton linter import of China in Nov was 5,530.35 tons, a month-on-month increase of 21.58% but a year-on-year decrease of 37.6%. The average import price was $542.89/mt, up 7.9% month-on-month and up 36.6% year-on-year. In Jan-Nov, the cumulative import volume was 88,994.4 tons, a year-on-year increase of 32.8%, surpassing the total import volume of 2023 and approaching the total for all of 2022.

In terms of destinations, Shandong has recently dominated the cotton linter import market, especially in Nov, when its import volume reached 4,184.8 tons, a year-on-year increase of 59.6%, accounting for 75.7% of the total. In contrast, Anhui that had previously been active in imports, saw a significant decline, with an import volume of 200.4 tons in Nov, down 94.5% year-on-year, occupying only 3.6% of the total. This rise and fall reflects changes in the demand for and sources of cotton linter in Shandong and Anhui, as well as differences in their quality requirements.

However, in terms of cumulative volume of Jan-Nov, the import of Shandong and Anhui is quite similar, with Anhui importing 21,683.4 tons (24.4% of the total) and Shandong importing 21,518.3 tons (24.2% of the total).

In summary, since the beginning of the new year, the gradual arrival of Chinese cotton linter has led to a monthly import volume of around 5kt in Sep-Nov, halving from the previous levels of over 10kt per month. However, there is significant differentiation among the destinations. During Jul-Sep, Anhui had a robust import market, consistently ranking first in volume. However, in Oct-Nov, Shandong's imports surged, particularly in Nov, when the import volume experienced explosive growth, establishing a dominant position.