Jul’21 cotton yarn imports may move up 9.7% m o m to 161kt – ChinaTexnet.com
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Jul’21 cotton yarn imports may move up 9.7% m o m to 161kt

2021-08-16 08:06:54 CCFGroup

1. Imported cotton yarn arrivals to China assessment

Cotton yarn imports of China in Jun reached 147kt, up 4.3% on the year and down 7.2% on the month. It amounted to 1064kt cumulatively in Jan-Jun, up 29.2% year on year. The imports in Jul is initially assessed at 161kt, up 9.7% on the month and down 1.2% on the year.

According to export data of foreign markets in Jun, cotton yarn exports of Vietnam in Jul is likely to drop from last month due to the production, order-taking and delay of Jul shipments affected by the pandemic. The exports of Pakistan in Jul is expected to move up compared with Jun. The export data of India is delayed. According to previous ordering of Chinese plants and arrivals, Indian cotton yarn exported to China is expected to increase slightly. Cotton yarn exports of Uzbekistan to China is predicted to inch up as more orders are shifted to Uzbekistani cotton yarn from Vietnamese cotton yarn due to the pandemic and the free duty to Pakistan was canceled. It is initially estimated that cotton yarn imports of China in Jul from Vietnam is at 71kt; from Pakistan 27kt, from India 19kt, from Uzbekistan 22kt and from other regions is small.

2. Imported yarn stocks declined

Arrivals of imported cotton yarn sharply declined in Jun. It is expected to move up in Jul, but with smooth sales previously, overall stocks decreased slightly even if the trades reduced gradually after the prices surged. There are obvious issues existing in the structure of imported cotton yarn. Carded 32S and OEC21S are still in tight supply and spot Indian combed 32S also reduces. At present, the offers of traders are high and some are reluctant to sell.

As traditional dull season, Jul saw healthy market this year. The operating rate of cotton yarn mills was not affected overall except regional and periodical influence of typhoon and the pandemic. Cotton and cotton yarn prices surged in Jul, which compressed weavers’profits largely. Some small-sized weavers even took holidays for some time. Overall run rate in Jul was slightly lower than that in Jun.

In terms of later market, Vietnamese shipments to China are delayed in Jul due to the pandemic and the quantity of Indonesian arrivals is also affected by the pandemic. According to the export data in the countries, cotton yarn exports of Vietnam inched down, that of Pakistan inched up, that of India was flat to last month and that of Uzbekistan moved up slightly. On the whole, Jul arrivals are expected to be more than Jun ones. According to the ordering in Jun and Jul, Aug arrivals may keep flat. It is noteworthy that the pandemic may hinder the arrivals and impact the supply of imported cotton yarn.

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