Apparel / Textiles & Accessories

According to the latest import and export data, India's cotton yarn exports in August 2022 totaled 32500 tons, down 8.19% month on month and 71.96% year on year, which continued to expand compared with the previous two months (the declines in June and July were 67.85% and 69.24% respectively). The import and export data showed that Bangladesh, one of the two major importing countries, continued to be sluggish in terms of inquiry and procurement, but India's cotton yarn exports to China in August rebounded strongly year on year, Contrary to the performance in June and July, OE yarn, C21S and below low count ring spun yarn have become the main force for Chinese enterprises to inquire and import.

There are three main reasons for the rapid recovery of Chinese buyers' cotton yarn imports to India in August:

First, due to the obvious decline in the order receiving rate of Indian cotton textiles and clothing, according to the import and export data, the Indian cotton output is expected to rise significantly in 2022/23 and the listing price of new cotton is expected to drop significantly year on year. In July/August, the domestic cotton yarn price in India continued to decline, and the hanging range of ship cargo, bonded cotton yarn (after customs clearance) and Chinese domestic cotton yarn continued to narrow, so the attractiveness of Indian yarn recovered.

Secondly, due to factors such as floods and energy shortage in Pakistan, the cotton mills have stopped production and reduced production significantly (since July, the cotton mills in Pakistan have stopped quoting Chinese buyers), and some traceable orders have turned to Indian, Vietnamese and Indonesian yarns. At the same time, some Indian yarn mills also reduced cotton yarn quotations in July and delayed contract performance, which delayed the release of demand until August/September.

Third, the sharp depreciation of the Indian rupee against the US dollar stimulated cotton yarn exports (breaking the 83 mark, a record low). According to the import and export data, since August, the inventory of Indian cotton yarn in China's main ports has been relatively low, and the supply of some specifications has been somewhat tight (mainly low count yarn). Denim enterprises and foreign trade companies in Guangdong, Jiangsu and Zhejiang and other places have experienced a single-stage recovery from export. Huacheng's import and export data observation report.