India's concentrated procurement contributes to a sharp rise in rayon yarn export of May

According to customs data, rayon yarn export of China was 12.216kt in May, a year-on-year increase of 20% but a month-on-month decrease of 13%. Among this, the export volume of single yarn was 10.985kt, up 87% m-o-m and 25% y-o-y, and that of ply yarn was 1.232kt, up 7% m-o-m but down 10% y-o-y. In Jan-May of 2025, the total exports increased by 10% y-o-y to 39.884kt.

In May, rayon yarn export to the five major countries (Brazil, Bangladesh, Pakistan, India and Vietnam) amounted to 9.649kt, a m-o-m increase of 78% and y-o-y increase of 25%, taking up 79% of the total exports. After a year and a half, India has resumed large-scale procurement, which is why the orders of vortex-spun yarn mills have generally improved since May-Jun. It is reported that India's concentrated procurement is due to the fact that the price of local vortex-spun yarn is significantly higher than that in China. At present, some vortex-spun yarn mills in South China still have deliverable orders for 0.5-1 month. In addition, the volume exported to Egypt has significantly increased to about 800 tons.

The main export regions for rayon yarn (Jiangsu, Zhejiang, Fujian, Xinjiang, and Sichuan) saw an export volume of 11.462kt in May, a m-o-m increase of 82% and a year-on-year increase of 49%, taking up 94% of the total exports. The m-o-m growth of Jiangsu, Zhejiang, Fujian and Sichuan w generally above 70%, and the export from Jiangsu, Zhejiang and Fujian was mainly contributed by the concentrated procurement of India.

The export of rayon yarn increased significantly in May, which was the first time to exceed 10kt in the past year, but there is still a big gap from the high point in 2022. The sharp increase in exports in May was mainly due to India's concentrated procurement of vortex-spun yarn. Judging from the current order situation of some vortex-spun yarn mills in South China, there are still 0.5-1 month of deliverable foreign trade orders. Therefore, for vortex-spun yarn mills, the off-season can basically be spent smoothly, but the trades in Chinese domestic market have not improved, so yarns of other technology still showed weaker appearance.