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Cotton yarn imports favourable for manufacturers

03
Jul '09
Customs statistics show that from January to May, China's cotton yarn exports registered 202,100 tons, down 21.2 percent year-on-year, the drop rate of each month was 32.7 percent, 10.8 percent, 27.2 percent, 18.3 percent and 5.6 percent, respectively.

However, from January to May, China's imports of cotton yarn marked 372,500 tons, an increase of 9.7 percent year-on-year, except January showing a decline, growth rates of other months indicated a growth of 14.9 percent, 7.8 percent, 12 percent, 14.5 percent, respectively.

China's cotton yarn imports were mainly from Pakistan, Taiwan, India and Vietnam from January to May this year. In the period, imports from Pakistan reached 128,800 tons, an increase of 24.8 percent year-on-year, accounting for 34.6 percent of China's total imports of cotton yarn.

Imports from Taiwan registered 45,600 tons, an increase of 73.1 percent year-on-year, accounting for 12.2 percent of total imports and imports from India fetched 31,400 tons, an increase of 29.9 percent year-on-year, accounting for 8.4 percent of total imports.

Imports from Vietnam achieved 23,900 tons, an increase of 139.2 percent year-on-year, accounting for 6.4 percent of total imports. Cotton yarn exports declined while imports continued growth.

The main reason is that China's raw cotton price was around 2,000 Yuan higher than international price, while cotton yarn price was 2000-3000 Yuan higher than same products in other countries, which means that China's costs of raw materials were at a disadvantage when compared with other countries.

Recently, cotton yarn 20s from Pakistan has been quoted at 12,800 Yuan / ton to Chinese importers, while the price of the same yarn made in China is 17500-19100 Yuan / ton, the gap is nearly 5,000 Yuan.

Yarn price of 21s from Pakistan is about 13,100 Yuan / ton, while the lowest price of the same yarn made in China is 17400-17500 Yuan / ton, about 4300 Yuan higher than Pakistani yarn.

Fibre2fashion News Desk - China


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