China’s cotton yarn imports in December were up 19.33 per cent year on year and 3.81 per cent month on month. China imports yarn from Pakistan, Vietnam, India, Uzbekistan, Indonesia and Taiwan. Arrival of Vietnamese cotton yarn in December is estimated at 75.6 kilo tons; Indian cotton yarn was 28.3 kilo tons; Pakistan 29 kilo tons; Uzbekistan 20 kilo tons; Indonesian cotton yarn at 8 kilo tons, Taiwanese cotton yarn 6 kilo tons and that of other regions and countries at 10.3 kilo tons.
Chinese cotton yarn prices were stable in December as market confidence recovered amid low inventory. The market sentiment turned bullish. Sales of traders improved and inventory declined. Foreign spinners, taking those in Vietnam as an example, raised prices continually as US cotton prices moved up, and the sales were still under pressure. If cotton yarn prices cannot increase following cotton prices, spinners will stay burdened. Cotton futures rebounded, but cotton yarn spot prices only increased slightly, which meant lower profits for spinners.
China was a major buyer of Indian cotton yarn. But of late, its share has dwindled to less than one-fifth. The recent slide can be attributed to overall macroeconomic conditions globally, the falling manufacturing sector in China, and most crucial the US-China trade war.