Oct'21 cotton yarn imports may move down 7.1% m-o-m to 167kt – ChinaTexnet.com
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Oct'21 cotton yarn imports may move down 7.1% m-o-m to 167kt

2021-11-12 08:34:25 CCFGroup

1. Imported cotton yarn arrivals to China assessment

Cotton yarn imports of China in Sep reached 179kt, up 6.1% both on the year and on the month. It amounted to about 1,579kt cumulatively in Jan-Sep, up 20.5% year on year, and up 4% from the same period of 2019. The imports in Oct is initially assessed at 167kt, down about 5.7% on the year and 7.1% on the month.

According to export data of foreign markets in Sep, cotton yarn exports of Vietnam to China saw a small decrease on the month. The control and prevention measures have been eased in Oct and some demand may be released, so the cotton yarn exports of Vietnam in Oct is expected to be good. Cotton yarn exports of Pakistan in Sep declined by 12.1% on the month, and that to China will also decline which may be reflected in China’s Oct imports considering shipment time. As for India and Uzbekistan, their Sep data have not been released, but looking from the export of yarn, textile and apparel, India’s exports in Sep is likely to inch up and the part to China may keep flat with last month, while Uzbekistan’s export is likely to dip on the month. It is initially estimated that cotton yarn imports of China in Oct from Vietnam is at 71kt; from Pakistan 20kt, from India 30kt, from Uzbekistan 23kt and from other regions 23kt.

2. Imported yarn stocks increase.

Oct arrivals of imported cotton yarn in China were moderate, but the sales were divergent. Lower-priced sources seemed a bit more popular. However, as forward imported cotton yarn price moved up, traders were hard to restock. With low-priced sources consumed, high-priced ones increased and the traders turned to reluctant to sell with discounts. As a result, the stocks of imported cotton yarn showed uptrend in the second half month. In China, the electricity restriction was eased in Oct and the operating rate of weavers improved, but they did not take many new orders.

In Oct, the operating rate in Foshan, Guangdong Province recovered quickly, as well as that in Nantong, Jiangsu Province, but in Lanxi, Zhejiang Province, the restriction on electricity was much stricter.

In terms of later market, Nov arrivals were mostly ordered in end-Aug and Sep, but the amount was small. In most of the second half of 2021, forward imported cotton yarn stayed higher than spot one, hindering the replenishment of traders. The orders to Vietnamese cotton yarn in Sep were also limited by the capacity due to the pandemic. The orders to Uzbekistani cotton yarn were relatively stable. Pakistan local market was good and the export declined. India’s dependency on China reduced and the exports only remained at normal level. Comprehensively, Nov arrivals of imported cotton yarn to China is likely to keep at medium level.

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