Why rayon yarn export sees a significant decrease in H1 2023?

According to customs data, rayon yarn export of China totals 61.805kt in H1 of 2023, a y-o-y decline of 38%. Among them, the export of rayon single yarn is 52.99kt, down 39% y-o-y. The export of rayon ply yarn falls by 33% y-o-y to 8.815kt. Disregarding the year of COVID-19 outbreak in 2020, the export of rayon yarn has dropped significantly for the first time.

In H1 of 2023, rayon single yarn exported to the five major destinations (Brazil, Bangladesh, South Korea, India and Vietnam) reaches 46.033kt, a year-on-year decrease of 42%, accounting for 87% of the total single yarn export. The sharp decline in the export is mainly attributed by India and Bangladesh whose reduction is nearly 36kt, and the significant reduction is likely due to the downgrade in overseas consumption, as consumers have opted for more affordable polyester products.

The export of rayon single yarn from major origins (Jiangsu, Zhejiang, Fujian, Xinjiang and Sichuan) totals 48.095kt during the same period, a year-on-year decrease of 43%. There are no regions showing a counter-cyclical growth, while the reduction in quantity is relatively less in Xinjiang and Sichuan, so the export share of these two regions has slightly increased.

The export volume in H1 of 2023 sees a significant decline instead of growing. Apart from the first year of the pandemic in 2020, it has never been seen before. The main reason is the declining purchasing power in overseas markets. There has been a significant decrease in the quantity exported to India and Bangladesh. This has also resulted in a decline in the exports of rayon yarn from major regions in China and increased reliance on domestic sales.