Cotton linter import of China declines sharply in Mar – ChinaTexnet.com
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Cotton linter import of China declines sharply in Mar

2022-04-29 07:54:19 CCFGroup

Cotton linter import of China in Mar encounters a sharp decline of more than 60% on both monthly and yearly basis after growing for the past two months, which is mainly dragged down by the demand.

 

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The global commodity market has witnessed drastic fluctuation this year on the Fed’s interest rate rise, reduction of its balance sheet, the Ukraine-Russia conflict and the spread of COVID-19 in China. Cotton linter demand of China is generally suppressed, especially notable decrease of demand from refined cotton as well as staple-grade cotton linter pulp and the reduction of demand may be more than 110kt in 2022.

 

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Cotton linter import market starts to cool down rapidly with reducing demand as the import volume of Mar has declined significantly after growing for the past two months. The import of the first two months of 2022 amounts to 30.1kt, up 60.2% year on year. However, the quantity falls sharply to 5.1kt in Mar, down 61.2% m-o-m and almost down 70% y-o-y, returning to the low point of 2020. The import price drops in the meantime, falling by 2.4% on the month to $559/mt in Mar.

 

The origins of imported cotton linter have changed much. In Mar, Turkey, Brazil and India ranks the top three places by taking up about 73% of total imports and the import from Syria increases sharply by occupying around 12% of total volume.

 

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In the first quarter of 2022, Turkey, Brazil and Turkmenistan ranks the top three places by taking up 59% of total imports. There is bigger increment of import from US and Central Asia, while the import from India declines much, totaling 4.388kt from Jan to Mar, down nearly 80% y-o-y.

 

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In conclusion, cotton linter demand of China is under pressure with changing environment of both at home and abroad, thus the import market is cooling down rapidly and the import volume is gradually returning to be rational.

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