Is there a new turning point of US cotton linter import?

Currently, Sino-US relationship is the most important bilateral relation in the world today, and the heads-of-state meeting in San Francisco is regarded as a new starting point for improving Sino-US relation. So, what is the situation of US cotton linter imports by China this year? Will there be a new turning point in the future?

The import volume of US cotton linter has shrunk significantly since Jun last year. From Oct 2022 to Jan 2023, the import volume was zero for four consecutive months. In Feb, Apr and May this year, the import volume was only one-digit number in tons, but picked up sharply from Aug to Sep, while imports were zero again in Oct.

The import volume of US cotton linter has the largest increase in 2020, with a year-on-year increase of 423.2%. The import volume in 2021 is the highest of 17.7kt, and the import volume from Jan to Oct this year is 901 tons, a year-on-year decrease of 90.23 %, reaching the bottom for many years.

US cotton linter is favored by China's refined cotton and nitrocellulose companies. Affected by several factors this year, the import volume has shrunk rapidly, and the proportion has declined significantly. The total import volume from Jan to Oct was about 900 tons, accounting for 1.5% of total. However, it is worth noting that India's cotton linter imports have soared this year. From Jan to Oct, the import of Indian cotton linter was 23.126kt, a year-on-year increase of 129.1%, and the proportion rose again to around 40%.

To sum up, following the meeting between the heads of state of China and the United States in Bali in mid-Nov last year, there was another meeting in San Francisco after a year, pointing out the direction for the development of Sino-US relations and becoming a new starting point for stabilizing and improving Sino-US relations. Although it is a foregone conclusion that the import volume of US cotton linter will shrink sharply this year, the direction of Sino-US relations and the trend of the cotton linter import market in the coming year is noteworthy.