By admin       2016-08-24

China, the top importer of cotton yarn from India, has significantly reduced its sourcing in recent past. However, India continues to be the major supplier of cotton yarn for China. China has simultaneously reduced yarn imports from the World over the past one year. In July, India’s cotton yarn exports to China plunged 75% year on year, both in terms of shipment and value. During the month, shipment was just 17 million kgs valued at US$285 million as against 66 million kgs worth US$1,118 million last year. This significant drop is likely to impede Indian exports in coming months since China has now trained its eye on supply from Vietnam. In 2016, China’s cotton yarn import dropped 30% year on year to 960 million kgs worth US$2,430 million. In similar comparison, import from India declined 49% to US$560 million for 231 million kgs. In June 2016, total imports were at 159 million kgs (US$400 million) as against 216 million kgs in July 2015 (US$593 million). Comparatively, import from India was 34 million kgs (US$82 million) in June 2016 as against 62 million kgs (US$169 million). From Vietnam, yarn imports into China in June 2016 stood at 52 million kgs (US$133 million) as against 46 million kgs (US$130 million) in July 2015. Thus, imports from India fell and those from Vietnam rose, partially covering the reduction from India. However, yarns from Vietnam into China were the costliest among major suppliers including Pakistan. Price-wise, Pakistan was the cheapest supplier of cotton yarn for China, followed by India and then by Vietnam. In June, average import price for cotton yarn from the World into China was US$2.51 per kg. The same from Pakistan was US$2.14 a kg, from India US$2.40 a kg and US$2.55 from Vietnam. In July 2015, the numbers were at US$2.75 a kg (Total), US$2.28 a kg (Pakistan), US$2.72 a kg (India) and US$2.83 a kg (Vietnam). Thus. It is apparent the although prices have dropped over the period, Vietnam prices continued to be remain the highest and Pakistan the lowest.

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