Bigger fluctuation of refined cotton exports in the first half of 2023

The export market for refined cotton and specialty cotton linter pulp had a good start in the first half of this year, with continuous growth in the first quarter. However, in the second quarter, the momentum weakened and showed a monthly decline. There were significant fluctuations in the main export regions as well.

According to customs data, the export volume of refined cotton (including specialty cotton linter pulp) from Chinese mainland in Jun was approximately 5.404kt, a month-on-month decrease of 14.24%, and a year-on-year decrease of 31.09%, both declining for consecutive three months. The total export volume in the first half of this year was 40.309kt, a year-on-year decrease of 5.48%. Among them, the export volume in the first quarter was 21.5kt, but falling to 18.8kt in the second quarter.

With the decline in raw material prices and the decrease in export volume, export prices were under pressure. The average export price in the first half of the year was $1,825/mt, a year-on-year decrease of 21.1%. The average export price in Jun was $1,790/mt, a month-on-month decrease of 3.6% and a year-on-year decrease of 21.6%, which was a relatively low level since Sep 2021.

China exported refined cotton to 36 countries (regions) in the first half of the year, an increase of 16 regions year-on-year. South Korea stood out as the top export destination, followed by Japan, Brazil, and Thailand, with a combined share of 68.2%. Among them, the export volume to Brazil was approximately 4.03kt in the first half of the year, experiencing the largest year-on-year growth of 251.3%. However, there was a significant decline in exports to European and American countries. The export volume to the United States and Germany was around 40 tons and 2.5 tons respectively, with a year-on-year decline of 98.1% and 99.9% respectively.

In terms of origins, Shandong, Anhui, Hubei, and Jiangsu were the top four in the first half of the year, accounting for 86.4% of the total exports. The concentration was relatively high. Among them, the export volume from Shandong and Anhui decreased year-on-year, with declines of 22% and 18.4% respectively. On the other hand, Hubei and Zhejiang experienced significant export growth. The export volume from Hubei was approximately 6619.6 tons, with a growth rate of 105%, while Zhejiang had an export volume of 3010.4 tons, showing a growth rate of 128.8%.

In summary, after experiencing high growth last year, the export of refined cotton and specialty cotton linter pulp performed well in the first quarter of this year with a year-on-year growth of 1.7%. However, in the second quarter, exports faced significant pressure, with a year-on-year decline of 12.5%. Shandong, Anhui, and Hubei continued to lead in exports in the first half of the year, with Hubei and Zhejiang experiencing a doubling of export volume. South Korea remained the top export destination, accounting for nearly 37% of the total exports, while there was a significant decline in exports to the United States and Germany, and a substantial increase in exports to Brazil.