China’s exports of single yarn increased by 46 per cent in August 2022. Exports of ply yarn and cable yarn were down six per cent in the same period. And exports of synthetic staple fiber sewing thread were down 11 per cent.

From January 2022 to August 2022, total exports of polyester yarn increased by 22 per cent over the same period last year. The export volume in August was lower than the average level for the first time since May. Orders have been significantly reduced since August, and are expected to further decrease in September.

Two major export markets for China’s polyester yarn are Southeast Asia and the Middle East. Yet, currently, these two markets are facing their own problems. Since July, textile and apparel orders in Southeast Asia have decreased significantly, thus the demand for polyester yarn has reduced accordingly. Insufficient US dollars was the main reason for the reduced export orders to the Middle East, which was mostly caused by the depreciation of its local currency and the rapid consumption of foreign exchange.

Meanwhile, as China’s exports were settled in US dollars, these countries faced great pressure despite the devaluation of the renminbi, thus orders have also decreased.