Negative growth of pure spun rayon yarn for the first time in the last 7 years

Rayon yarn export of China totals 190.091kt in 2021, up 5.09% year on year, including 130.719kt, of single yarn (down 4.94% year on year, witnessing negative growth for the first time in the past seven years) and 17.344kt of ply yarn (up 6.45% year on year). Thus, the export of pure spun yarn takes up 78% of total rayon yarn exports, the lowest percentage in the past five years. The export of blended rayon yarn increases by 55.19% to 42.028kt in 2021 after maintaining the level around 26kt for consecutive three years. All in all, the total volume of rayon yarn export is growing, but the increment is mainly contributed by blended yarn.

Rayon single yarn exported to Brazil, Bangladesh, Pakistan, India and Vietnam in 2021 totals 118.906kt, down 6% year on year, occupying 91% of total single yarn exports, falling by 1 percentage point. Among the top five destinations, the export to Brazil, India and Vietnam respectively drops by 5%, 19% and 11%. Although the export to Bangladesh and Pakistan rises by 71% and 67%, the total exports are dragged down by the year-on-year decline of India and Brazil due to bigger base number.

The export of rayon single yarn from major origins (Jiangsu, Zhejiang, Fujian, Xinjiang and Sichuan) totals 126.263kt in 2021, down 4% year on year, taking up 95% of total single yarn exports, falling by 1 percentage point. The export from Jiangsu, Fujian, Xinjiang and Sichuan declines notably in 2021, while that from Zhejiang grows sharply by 141% and Zhejiang becomes the second largest origin by taking up 21% of total exports. Zhejiang and Sichuan-based spinners are expanding vortex-spun yarn capacity in the recent two years and vortex-spun yarn is much more favored in the international market, so the exports show better performance.

In conclusion, rayon yarn export of China still sees minor growth in 2021, despite divergences between pure spun and blended yarns. The export of pure spun yarn witnesses negative growth for the first time in the past seven years, while that of blended yarn increases sharply and further growth is expected to sustain with the development of various varieties by downstream plants. The total exports are dragged down by single yarn as the largest category due to notable reduction of demand from India, but the decrement is somehow filled by demand growth of Bangladesh and Pakistan. Given frequent changes in the major areas of rayon yarn exports in recen years, the competition in international market may becoming fiercer in the future.