China’s cotton yarn imports from Pakistan increased by 4.36 times to $ 41.836 million in August from the same period last year with year-on-year imports increasing by 336 percent, states data from China's General Administration of Customs.
As per Hua ng Xifen, Sales Executive-Import and Export Department, Litai Xingshi (Taicang) Holding Co, Pakistan mainly produces low-count sirospun yarns generally below 21s, which are mostly imported to south China's Guangdong province to be made into denim.
Another importer, Seazon Textile and Apparel Co imported about 1,000 tonne of cotton yarns from Pakistan every year. The company’s denim fabric is made of thick and low-count yarns, which are basically 10s or 8s, no more than 12s. The fabric woven with higher-count yarns is thinner and softer.
The main reason for the surge in import lies is that Pakistan's yarn export to China enjoys zero tariff, thus having a greater competitive advantage internationally. Also, Pakistani yarn is much cheaper than the Chinese one, the largest gap reached RMB 2,000 to 3,000 per ton in the last two years, with a price gap of about 10 per cent.
In terms of denim fabrics, China's domestic denim fabrics are relatively variable according to specific orders, so manufacturers find sticking to one kind of cotton yarn risky. These manufacturers plan to continue importing yarns from Pakistan as long as they are consumed in China’s factories and their prices are acceptable