Cotton yarn imports of China in Augustincreased by 7.9 per cent to reach 168.9kt and up 0.8 per cent on the month. As per a CCF Group report, imports amounted to about 1,400kt cumulatively in January-August increasing by 22.6 per cent year on year, and 3.6 per cent from the same period of 2019.
According to export data of foreign markets in August,cotton yarn exports of Vietnam saw a small decrease on the month partly because the pandemic delayed the export. The control and prevention measures in southern zone surrounding Ho Chi Minh have been eased, but the spinners still ran at low rate amid severe pandemic. On the other hand, orders of mills in central and southern zones performed well. Therefore, overall exports to China did not slump and remained relatively stable. In Sep, this situation may sustain. Cotton yarn exports of Pakistan in Aug increased. They were ordered in Jul when the buying sentiment of siro-spun yarn in China was mild. Sep arrivals to China are expected to increase further. Aug arrivals from India and Uzbekistan have not been released, but looking from yarn and apparel exports, India’s Aug exports is assessed to decline slightly on the month and Uzbekistan’s may remain stably upward. It is initially estimated that cotton yarn imports of China in Sep from Vietnam is at 69kt; from Pakistan 23kt, from India 25kt, from Uzbekistan 25kt and from other regions 25kt.
Arrivals of cotton yarn imports of China in September declined, and the sales were reported to be slow. The traditional peak season did not show bullish sentiment it should have been. On the contrary, downstream operating rate slid sharply weighed by dual control on energy consumption and electricity restriction. Cotton yarn was sold slowly and traders lowered prices with upset mindset. However, looking from the inventory, structural issues were relieved.