According to feedback from weaving companies and cotton yarn traders in coastal areas such as Guangdong, Jiangsu, Zhejiang, Shandong and other coastal areas, since March 2020, consumer demand for Indian cotton yarn and blended yarn has continued to enter a downward path; some traders have stepped up their efforts to adjust product structures and gradually Abandon the contracted import of Indian cotton yarn, and expand Vietnamese yarn, Pakistani yarn and Central Asian cotton yarn (mainly Uzbekistan yarn, Azerbaijani yarn); while Indonesian yarn is generally small in size, supply is unstable, and cotton yarn prices are high, so the trade Business operations are also more cautious, and most purchases are based on order, demand, and profit.
According to customs statistics, my country imported 146,700 tons of cotton yarn in June 2020, a month-on-month increase of 44.53%, and a year-on-year decrease of 6.46%; from January to June 2020, my country imported a total of 864,700 tons of cotton yarn, a year-on-year decrease of 16.25%. %.
A large cotton textile import and export company in Zhejiang stated that due to the deterioration of relations between China and India due to the COVID-19 epidemic and border conflicts between China and India, the main “contributor” to the decline in China’s cotton yarn imports in the first half of 2020 was India, Pakistan. According to statistics from relevant Indian departments, from April to June 2020, India’s exports of cotton textile products to China dropped by 74% (only US$90 million); China’s share of India’s total cotton textile exports also dropped to 6.9%. Indian cotton yarn, gray cloth, fabrics, clothing, etc. are accelerating their departure from the Chinese market.
Why did India’s cotton textile exports to China plummet in the second quarter? The main reason is that in the first half of 2020, my country’s textile and apparel industry was greatly impacted by the outbreak of domestic and international epidemics; coupled with the continued deterioration of Sino-US relations due to Trump’s continuous provocation by the White House, domestic demand and exports suffered double suppression, gauze, Consumer demand for clothing and other products has declined significantly, and imports of cotton textiles from Vietnam, India, Pakistan and other countries have naturally declined from high levels. But three other factors are also important reasons why India’s exports to China “fall behind” and suffer heavy losses:
First, from March to May, due to the raging domestic epidemic in India, the Modi government announced a “country lockdown”, resulting in The production, transportation, sales, and shipping of cotton textiles are at a semi-stagnant state, and the supply chain is semi-interrupted. Not only do weaving mills and traders in China, Bangladesh and other countries dare not sign contracts and place orders, but Indian yarn mills also reduce their quotations and cautiously accept orders; 2. The tension between China and India due to border conflicts has greatly affected trade, exchanges, transportation, etc. It is not surprising that Chinese buyers “block” Indian gauze and instead purchase Vietnamese yarn, Pakistani yarn, Central Asian yarn, and Indonesian yarn; three In order to prevent the imported epidemic, China has increased inspection and quarantine of Indian cotton textiles in the hardest-hit areas. Such as detailed shipment inspection at the port, delayed cargo clearance, delayed delivery of certificate of origin, etc.; fourth, Indian cotton yarn has been surpassed by Vietnamese yarn, Indonesian yarn, Uzbek yarn, etc. in terms of quality, price, and stability; medium and high-quality Pakistani yarn indicators It is comparable to it, but the price has some advantages, and printed yarn can easily be replaced. </p
