According to statistics from relevant Indian departments, the quantity and value of cotton yarn imported by India from China increased sharply from April to June 2022 (from 13,399 kg and US$14,982 in April to 151,962 kg and US$754,000 in June). Except for sewing thread, all other specifications of cotton yarn have increased several times.
Judging from feedback from some Indian cloth mills and traders, the import demand for Chinese cotton yarn is still relatively strong in July and August, especially medium and high count cotton yarn, which has attracted the attention and favor of Indian companies. Customs data shows that in July and August 2022, my country exported 25,500 tons of cotton yarn and 20,600 tons respectively, a year-on-year increase of 0.71% and -17.75% respectively. However, exports of cotton yarn to India continued to grow significantly. Some domestic cotton spinning mills and trade Through various channels, businessmen hope to open and expand exports to Indian companies. But overall, my country’s cotton yarn exports to India are still in their infancy, and have little impact on India’s domestic cotton yarn supply and prices. It has not yet attracted the attention of government departments, Indian industry associations, etc.
The main reasons why my country’s cotton yarn exports to India have doubled compared with the previous month are as follows:
First, due to the “extremely high” domestic cotton prices in India in 2021/22 and other factors such as increases in energy and transportation, since the second quarter of 2022, the proportion of yarn mills in southern India has reduced production shutdowns by more than 50%, while the northern state of Gujarat has Nearly 90% of factories have closed down and stopped production, so the supply of cotton yarn is insufficient.
Second, Indian terminal companies have recently received more Christmas orders from Europe and the United States in 2022, stealing the spotlight from China. Data shows that the total amount of Christmas products shipped from India to the United States in August 2022 was approximately US$20 million, an increase of approximately three times compared with the same period last year.
Third, compared with Indian yarn, Chinese cotton yarn is of higher quality and cheaper, with outstanding cost performance, especially cotton yarn with a count of 50S and above (including combed). Indian traders have reported that the current price of imported Chinese cotton yarn is about 20% lower than the domestic price in India (Indian cotton yarn imports have a basic tariff of 18% and other taxes), and quality indicators such as CV value, hairiness, strength, and stability are more competitive. powerful.
Fourth, India itself and countries in Southeast Asia and South Asia have a certain consumption capacity for cotton textiles/clothing, and export to non-U.S. and EU markets. Several import and export companies in Jiangsu, Zhejiang, Guangdong and other places said that currently the proportion of Indian orders requiring traceability is very low, and the contract price is the focus of negotiations.
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