Indian cotton linter continues to dominate China’s import market

Cotton linter import of China has continued to increase this year, with the volume in Mar more than doubling compared to the same period of 2023. In the first quarter, the import volume increased by over two times compared to the same period last year, with Indian cotton linter imports standing out, while Brazilian and American ones saw a significant rebound.

Since the fourth quarter of last year, due to the continuous weakness in the cottonseed meal and cottonseed oil market, cottonseed oil processing plants have struggled to make a profit, resulting in limited operation of cottonseed oil and delinting plants in China. This has led to a shortage of domestic cotton linter supply, pushing up prices and increasing the demand for imported goods.

According to customs data, the import volume of cotton linter in Mar this year was 9,156.2 tons, a month-on-month increase of 30% and a significant increase of 124.4% compared to the same period last year. The average import price was $383.9/mt, an increase of 2.5% on monthly basis, but a decrease of 29.5% compared to the comparable 2023 level. The total import volume in the first quarter of 2024 was 21,970.3 tons, an increase of 203.3% on yearly basis.

In terms of import origins, Indian cotton linter imports were prominent, followed by Brazilian linters. In Mar, India, Brazil, Kazakhstan, and the United States were the top four origins, accounting for nearly 95% of the total import volume. In the first quarter, India, Brazil, the United States, and Tanzania were the top four origins, accounting for over 93% of the total.

Due to price advantages and strong downstream demand, imports from India saw a significant increase this year, with an import volume of 13,671.7 tons in the first quarter, a large increase of 414.6% compared to the same period last year, taking up 62.2% of the total. Imports of US cotton linter also saw a significant recovery, which was 1,216.8 tons in the first quarter, an increase of 13,434.9% compared to the same period last year, accounting for 5.5% of the total.

In conclusion, Chinese cotton linter prices keep high due to limited supply, thus the import volume has rapidly increased this year. Indian cotton linter continues to dominate the market, with a 55% share in Mar and a 62% share in the first quarter. Additionally, imports from Brazil and the United States have also seen significant increases, with growth of 171.8% and 13,434.9% respectively in the first quarter.