Yarn Expo Spring 2025: Significant absence of Indian exhibitors

The 2025 China International Textile Yarn (Spring/Summer) Exhibition is once again being held at the National Exhibition and Convention Center in Shanghai from March 11 to 13. On the first day, Hall 8.2 was bustling with visitors. Several representative domestic cotton spinning enterprises, including Digital World, Weiqiao Textile, Wuxi No.1 Cotton Mill, Litai, and Dongchunxing, attended as scheduled. The exhibition groups from Xiajin County and Pei County, along with local small and medium-sized spinning mills, participated collectively. Well-known inland spinning enterprises such as Shandong Guanxing also attracted significant attention.

In contrast, the scale of overseas yarn exhibitors this year is relatively small, primarily concentrated in Zones B, C, and E. Notably, the number of booths for the Indian delegation has decreased by more than 50% compared to last year, with many well-known brands absent. Only ACME, NRKR, Amar, and GDJD were present. As for Pakistani yarn, only Keywin participated, while Vietnamese and Uzbekistani yarn exhibitors were mainly represented by local agents. A few overseas companies specializing in colored and blended yarns also participated. The Taiwan regional delegation was absent, with only two Taiwanese mills, Dayao and Dali, setting up independent booths in Hall 8.2. Due to the competitive pricing of domestic Xinjiang yarn, the enthusiasm of cotton yarn traders and domestic agents to exhibit was also relatively low.

When asked why Indian exhibitors have significantly decreased, the answer from exhibitors was unanimous: since last year, Indian cotton yarn sales in China have been on a downward trend, and the recent transaction atmosphere has also been weakening. NRKR's sales manager candidly stated, "The Chinese market has been performing very poorly. Currently, our monthly cotton yarn exports to China amount to only 40–50 containers, accounting for just 10–20% of our total sales, whereas at peak times, we exported 200 containers per month."

Beyond the drop in export volume, other exhibitors also pointed out that Chinese buyers are becoming increasingly price-sensitive, and many specifications are experiencing phased losses. GDJD's sales representative emphasized, "Our Chinese clients tell us that the Trump administration's continuous tariff hikes on Chinese products have made their business extremely difficult. As a result, we are shifting our market focus to Europe, Bangladesh, and South America, as they offer higher prices." Several neighboring exhibitors confirmed that CCH30S, a 30-count compact combed yarn, is currently the best-selling specification in Europe and Bangladesh. The surge in demand for combed yarn has also led to a relatively abundant supply of Indian comber noil, while the more affordable open-end yarn has become the mainstream import in the Chinese market.

Exhibitors also noted that domestic demand for cotton yarn in India remains very strong. Many small spinning mills are running at full capacity and even expanding their open-end spinning lines. They reported that local yarn prices and those in Bangladesh are slightly higher than China's export prices. Some Indian yarn price quotes collected at the exhibition with 16-count woven yarn at $2.32–2.33/kg, 21-count yarn at $2.42/kg, 32-count ring-spun yarn at $2.65/kg, 30-count compact combed yarn at $2.90/kg. The prices are less competitive for Chinese buyers.

Although the Vietnamese delegation did not participate in this exhibition, some manufacturers were present to visit and communicate with Chinese customers. Their situation is similar to that of Indian yarn mills. Overall, pure cotton ring-spun yarn exports are struggling, with leading brands resorting to temporary price reductions to secure orders, which has largely satisfied China's market demand. The remaining lower-end market is forced into price wars, and some mills, unable to endure long-term losses, have reduced their ring-spun operating rate to 50–60%.

In contrast, Vietnamese open-end yarn has received positive feedback in China due to its stable quality and better cotton blending. A Vietnamese manufacturer who attended last year's exhibition shared, "Our open-end spinning lines are running at full capacity, but production slots for some bleach-cleaned specifications are already booked until May. Since Japan and South Korea offer very good prices, the volume allocated to China each month is limited, and delivery lead times are extended." Similar to Indian mills, Vietnamese manufacturers have recently seen a significant increase in market share in South America.

Xinjiang cotton yarn price cuts surprised overseas exhibitors, exacerbating concerns over shrinking export demand due to tariffs. China's imported cotton yarn demand remains weak, with traders either downsizing or aggressively cutting prices to clear inventory, squeezing profit margins. Some traders see no opportunities for new orders.

　　However, as the USD/CNY exchange rate gradually stabilizes below 7.30, the import business outlook has slightly improved. Break-even or marginal profits have become the shared goal among industry players. Many traders still plan to explore new cooperation opportunities in Vietnam after the peak season. For overseas cotton yarn suppliers, the "small but refined" model may continue in the future. How to differentiate themselves from domestic Chinese cotton yarn in terms of quality, price, and specifications remains a critical challenge.