China's cotton yarn imports may witness sharp rise in 2013

26 Mar '13

2 min read

China’s cotton yarn imports are likely to rise by as much as 30 percent year-on-year in 2013, according to industry analysts.

The Government of China has adopted an aggressive policy that ensures adequate returns to cotton growers. As a result, the prices of cotton, as well as cotton yarn, are comparatively higher in Chinese domestic market than the imported products.

The Chinese Government regulates import of cotton by enforcing quota tariffs and other restrictions. However, it cannot impose additional duties on import of cotton yarn due to its commitment to the World Trade Organization (WTO) and some bilateral agreements, according to China Textile Industry Association.

In view of the existing situation, some Chinese enterprises have shifted their cotton yarn production to low-cost Southeast Asian countries.

Other Chinese textile factories have resorted to procurement of cotton yarn from India and Pakistan, which costs around 2,000 yuan/ton lower than the prices prevailing in the domestic market.

Cotton yarn imported from India and Pakistan are especially used by textile units that produce low-end products such as towels, T-shirt, jeans, stockings and innerwear. Since many of these units are small factories that face fierce competition, they prefer to use raw materials that are available at lower costs.

Hence, Chinese cotton yarn imports are likely to witness a sharp rise of 30 percent year-on-year in 2013.

Fibre2fashion News Desk - China

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