Chinese cotton yarn imports have fallen month on month. The sales speed in the spot market slowed down greatly dragged by the weak demand for downstream traceable orders. The circulation period of imported cotton yarn lengthened, making overall Chinese ordering volumesfall.

In addition to great fluctuation of exchange rates, speculative procurement demand has reduced heavily. Cotton yarn imports were mostly with multiple batches and low volumes in November 2022. Low-count open-end yarn from Vietnam had fairly big orders. But Vietnamese yarn exports to China fell from 50 per cent to 48.6 per cent in October 2022 and totaled at 51.9kilo tons. Excluding blended yarn, Vietnamese cotton yarn imports may reach around 36kilo tons in November. The shrinkage of Pakistani yarn exported to China was sharper. Yarn imports from Pakistan may reduce to around five kilo tons.ICE cotton futures fell in October.

However, most traders chose to reduce ordering or not to order as they were worried about the risk of exchange settlement cost. Imported cotton yarn inventory has gradually reduced to around 40kilo tons. Vietnamese yarn imports may rise again in December when the ordering profit will tend better due to the falling of the exchange rate.