In The First Half Of The Year, The Import Price Of Cotton Yarn In China Continued To Increase.

According to our customs statistics, in the first half of the year, China

Imports amounted to US $3 billion 550 million, a year-on-year decline of 23%, of which 2/3 was imported from cotton yarn, with an import volume of US $2 billion 430 million, down 26.4% from the same period last year, and cotton yarn imports accounted for the whole country.

21.9% of total imports.

Since the end of last year, Chinese enterprises' enthusiasm for imported cotton yarn has been declining.

In the first half of this year, the downward trend continued.

1~6 months, China's total imports of 962 thousand and 900 tons of cotton yarn, a decrease of 18.68% over the same period last year.

In January, the volume of imports dropped by 25.9%, a smaller base in the same period last year, a slide of 6.6% in 2 months, a decrease of 23% in March and April, a narrowing of 7.3% in May, a decrease of 17.7% in June and 159 thousand tons in imports.

Cotton yarn import price continued downward, 1~6 monthly average price of 2.53 U.S. dollars / kg, down nearly 10 percentage points.

In the first half of the year, the import volume of cotton yarn in 10 provinces and cities in China exceeded 10 thousand tons.

Among them, the import cotton yarn in Anhui increased by 8.5 percentage points compared with the same period last year. The import of cotton yarn in Shandong cotton textile province increased by 18.3% compared with the same period last year. The main imports of India yarn and bar yarn were 142 thousand tons, ranking third in the import and export provinces; the import cotton yarn in Guangdong was 266 thousand tons, down 20.1% compared to the same period; Zhejiang cotton yarn imports 161 thousand tons, second, down by 23.8% compared to the same period; Shanghai's imports of cotton yarn decreased by 5.5%; Jiangsu, Fujian and Beijing decreased by 30%, 30% and 30% respectively.

The trade pattern was dominated by general trade, accounting for 77.5% of total imports of cotton yarn, 746 thousand tons, down 17.3% compared with the same period last year. Processing trade accounted for 19.3%, and imports amounted to 186 thousand tons, down 29.6% from the same period last year, of which 175 thousand tons of processing were imported.

China's cotton yarn market has long been impacted by Pakistan low count yarn and high count yarn such as India, Vietnam and Indonesia.

In recent years, a large number of enterprises have invested in the cotton mill in Vietnam, and our cotton yarn imports from Vietnam have continued to grow.

At present, Vietnam is the largest importer of cotton yarn in China. In the first half of this year, China imported 279 thousand tons of Vietnamese cotton yarn, an increase of 16.6% over the previous year, accounting for 29% of the total imports of cotton yarn.

Secondly, India and Pakistan account for 21.3% and 18.4% of the total imports respectively.

In 2016 3~5, China's imports of Vietnam's cotton yarn accounted for 28.7%, 31.6% and 30.8% of the total imports of cotton yarn for the month, and Vietnam's cotton yarn was topped for 4 consecutive months.

Analysis of the reasons, first of all, Vietnam's cotton mill from equipment, worker proficiency to yarn quality gradually recognized by Chinese buyers.

Vietnam is not a cotton producing country. Its raw materials are mainly from the United States, India, Africa, Central Asia, Brazil, Australia and so on.

The export of high quality cotton in India decreased significantly in 2015/2016, and the quotation of India cotton increased sharply from March to the end of July, or more than 55%, which was higher than the quotations of "three silk" in the United States.

Vietnam's cotton mill's purchasing focus shifted to cotton, West African cotton and some Australian cotton and Uzbekistan cotton in 2016. The quality of cotton blending has been greatly improved. The quality of C21S~C40S cotton yarn has been leading the production of cotton yarn from India and Pakistan from strength, hairiness to CV value and breakage rate of 100 meters.

Secondly, the zero tariff policy imported from Vietnam cotton yarn makes Vietnam's cotton yarn full of advantages in front of India cotton yarn.

According to the tariff agreement between China and ASEAN Free Trade Area, China imports Vietnamese cotton yarn as zero tariff, while India and Pakistan cotton yarn enter China with a tariff of 5% or 6%.

For example, on August 1~2, the quotations of India and Vietnam C32S A+ yarn in the Qingdao bonded area were 2.91 US dollars / kg, 2.94 US dollars / kg respectively, and the cost after customs clearance was 23650 yuan / ton and 23100 yuan / ton respectively.

Although the price of Vietnamese yarn is higher than India yarn 0.03 US dollars / kg, the price of RMB is lower than India yarn 500 yuan / ton, the price advantage is very obvious.

More than 80% of cotton yarn in Vietnam has been sold back to China.

Because Vietnam is on the border with China, and the preferential measures for workers' wages, production costs and taxes are quite attractive, about 30%~40% of Vietnam's exports to China's cotton yarn come from our cotton mills in Vietnam. With the increasingly frequent activities of mainland enterprises in Vietnam in the past two years, the Vietnamese yarn sold back to Vietnam will become larger and larger.

In addition, since the current spinning capacity in Vietnam is seriously higher than the weaving capacity, the yarn is "oversupply", and the export of cotton yarn becomes a pillar of foreign exchange.

In addition, although the scale of Vietnam's cotton mill is small, its reputation is relatively good, and its pportation distance is close, and its trade operation is flexible. It is also an important reason for attracting buyers in China.

From the survey point of view, in addition to the dozens of large scale (50 thousand spindles) cotton textile enterprises in Vietnam, 85% of the mills are 20 thousand spindles or even 2000 spindles of ~5000 ingots, compared with India, Pakistan and other traditional textile giant cotton mills, they have limited capacity to receive orders, and the supply capacity is insufficient. The enterprises are mainly based on fixed spinning, fixed production and bonded sales, basically pricing in line with the market, with relatively good reputation and quality problems, which are easy to claim.

Compared with India, Pakistan, Indonesia and other cotton mills, Vietnamese enterprises have stronger ability to perform.