China's cotton yarn imports plunge as costs rise

China's cotton yarn imports fell sharply in April 2024, down 35 per cent from March to 110,900 tons. This aligns with industry expectations and reflects a decrease in import activity due to rising overseas cotton prices. The unit price of imported yarn also climbed to $2.48/kg, making it less cost-effective compared to domestic options.

Vietnam remained the top supplier with 54,600 tons, but imports from Pakistan, Uzbekistan, and India all declined significantly due to price increases. The import structure also shifted, with carded single yarn below 8s and combed yarn 30-47s seeing a rise in popularity.

Blended cotton yarn imports were less affected, dropping only slightly to 13,480 tons. Vietnam continued to dominate this market segment, supplying 82.5 per cent of the total. Interestingly, Guangdong Province surpassed Zhejiang as the leading import destination for blended yarn.

Overall, the data suggests a cautious approach by Chinese cotton yarn importers due to rising international prices. This trend is expected to continue, with domestic yarn becoming increasingly cost-competitive.