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Massive surge in Feb Chinese cotton yarn imports
Apr '12
Chinese cotton yarn imports in February surged in triple digits from a year ago and also rose massively from a month earlier.

China imported 123,500 tons of cotton yarn in February this year, showing an increase of 72.36 percent compared with the previous month.

It also grew massively by 122.37 percent from the same period last year, according to the latest statistics of the General Administration of Customs.

In the same month, China exported 28,500 tons of cotton yarn, up 18.90 and 12.90 percent from the previous month and same time last year, respectively.

Analysts say that price advantage in import prices gave support to the significant rise in imports.

At present, imported cotton yarn is 1,000-2,000 Yuan / ton cheaper than domestic cotton yarn.

Especially there is more price advantage when importing yarn of 32s and below, so China's textile companies choose to purchase imported cotton yarn.

Plus, they add, China's cotton purchase and storage is near completion and high cotton price may again activate imports of gray fabrics, which will be detrimental to domestic spinning mills.

The state buys cotton 19,800 Yuan per ton for the reserves, which has led to the widening gap between domestic and international cotton prices.

Many companies are unable to purchase low-cost international cotton, due to quota restrictions.

The huge difference between cotton costs has severely affected international competitiveness of China's cotton textiles.

At the same time India, Pakistan, Vietnam and other countries are seizing the advantage in global markets for cotton textile products.

Fibre2fashion News Desk - China

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