India’s Cotton Yarn Exports To China Rebounded Strongly Month On Month In August

China Cotton News: According to the latest import and export data, India’s total cotton yarn exports in August 2022 will be 32500 tons, down 8.19% month on month and 71.96% year on year, which continues to expand compared with the previous two months (67.85% and 69.24% respectively in June and July). Bangladesh, one of the two major importing countries, continues to have a sluggish and cold inquiry and procurement, but India’s cotton yarn exports to China in August showed a strong rebound year on year, Contrary to the performance in June and July, OE yarn, C21S and below low count ring spun yarn have become the main force for Chinese enterprises to inquire and import.

There are three main reasons for the rapid recovery of Chinese buyers’ cotton yarn imports to India in August:

First, due to the obvious decline in the order receiving rate of Indian cotton textiles and clothing, the expected substantial increase in Indian cotton output in 2022/23 and the large year-on-year drop in the listing price of new cotton, the domestic cotton yarn price in India continued to decline in July/August, and the hanging range of cargo, bonded cotton yarn (after customs clearance) and Chinese domestic cotton yarn continued to narrow, so the attractiveness of Indian yarn recovered.

Secondly, due to factors such as floods and energy shortage in Pakistan, the cotton mills have stopped production and reduced production significantly (since July, the cotton mills in Pakistan have stopped quoting Chinese buyers), and some traceable orders have turned to Indian, Vietnamese and Indonesian yarns. At the same time, some Indian yarn mills also reduced cotton yarn quotations in July and delayed contract performance, which delayed the release of demand until August/September.

Third, the sharp depreciation of the Indian rupee against the US dollar stimulated cotton yarn exports (breaking the 83 mark, a record low). It is understood that since August, the inventory of Indian cotton yarn in China’s main ports has been relatively low, and the supply of some specifications has been somewhat tight (mainly low count yarn). Denim enterprises and foreign trade companies in Guangdong, Jiangsu and Zhejiang and other places have experienced a single stage of recovery from export.