Cotton yarn edge out fibre

02 Dec '05

2 min read

More and more Chinese spinners are benefiting from imports of cotton yarn instead of importing the cotton and spinning it at home.

This economic bait to import yarns over fibre is even larger for the spinners in the local market, which attract no VAT rebate.

Some spinners plan to establish new units and procure cotton yarns from India, which is expecting bumper cotton output, this year too.

When monthly cotton yarn imports began to experience double-digit growth since April, this spurred imports of larger yarn evidently.

Cotton yarn imports amounted to 65,262 tons in October registering year-on-year expansion of 16.4 percent. Net cotton yarn import of China shot up to 30,451 tons making a 39.2 percent growth in October.

October was the eighth month in a row when cotton yarn imports crossed 65,000 tons mark.

Pakistan and India are the leading exporters for China's yarn imports with some volume from almost every main yarn exporter in Asia.

Beginning this year, yarn exports of China increased but later, there has been a dramatic decrease in exports (cotton yarn exports of 34,811 tons in October was the lowest since February).

Besides, cotton yarn export from China has become exorbitant; as a result Chinese spinners find it difficult to vie with Indian and Pakistani yarns.

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