Chinese yarn market challenges Indian, Pakistani suppliers

The Yarn Expo held in Shanghai from March 6- 8, saw unprecedented response despite its slightly earlier scheduling. Companies such as Shanghai DiW, Wuxi Yimian Textile, and Sateri dominated, attracting numerous potential customers. However, the overseas exhibition area saw a reduction, with Indian and Pakistani exhibitors prominent, alongside few Vietnamese and Indonesian participants.

Imported yarn prices increased post-Chinese New Year, contrasting with domestic prices. This divergence intensified the challenge of reconciling international and domestic prices. Overseas yarn mills saw profitability challenges due to high cotton prices, prompting transitions to blended yarn and differentiation strategies.

Pakistani spinners, despite facing rising costs, had short-term relief from pre-holiday orders. Indian mills struggled with reduced Chinese market orders and lowered operating rates to manage finished product stockpiles. The advantages of China's domestic cotton yarn became apparent, with downstream mills hesitant to accept high-priced imported yarn. Traders aimed to maximize benefits from pre-sold materials but hinted at collaboration with domestic mills if foreign cotton prices persisted.

Shanghai DiW's high-profile equipment procurement aimed to reduce the price of compact-spun yarn, posing a threat to imported yarn demand. The delineation between overseas and domestic yarn markets became clearer, necessitating differentiated strategies. The Yarn Expo showcased the industry's struggle with diverging cotton prices, prompting shifts in market dynamics and strategies among both domestic and overseas players.