According to China Customs, in the first nine months of 2012, export of China’s cotton textile products totalized 18.64 billion USD, descending by 6.0% comparing with the same period of time in 2011. Of them, cotton fabrics accounted for nearly half of the total exports, with a value of 9.15 billion USD, down by 6.1% year-on-year.

 

In terms of import, from Jan. to Sep. 2012, China imported 5.34 billion USD cotton textile products, witnessing a year-on-year rise of 24.9%. Of them, the import of cotton yarn reached 3.57 billion USD, taking a proportion of 67% of the total, and increasing by 46.0% comparing with the same time of 2011.

 

Analyzing the cotton textiles price in the first three quarters in 2012, as influenced by the descending raw material prices both in home and abroad, the price of cotton yarn and fabrics represented an obviously negative growth, especially under an unfavorable foreign trade environment, leading to a markedly year-on-year downward trend of China’s cotton textiles export value.

 

On the other hand, as referring to import, due to the strong support of import volume, the cotton yarn and fabrics in China witnessed a year-on-year optimistically increasing import value in the first nine months of 2012. See more detailed information by cotton items in the following part.

 

In the first ten months of 2012, cotton import in China totalized 4.3016 million tons, while from Jan. to Oct. 2011, the number reached 2.194 million tons, the cotton import in 2012 saw a rise of 95.8% comparing with the same time of 2011.

 

In terms of monthly import statistics, in the first ten months, there were two import peaks: one was in February and March, and the other was in May to July.

 

In Feb. 2012, according to the Customs, the cotton import arrived at 616 thousand tons, witnessing a year-on-year increasing of 88.7%. In February and March, it was the time toward the end of domestic Chinese cotton reserves. Furthermore, international cotton price kept falling while domestic price still climbed steadily with an enlarging price gap. As the statistics indicated that in Feb. the price gap exceeded 3000 yuan/ton, so that most domestic Chinese textile and apparel enterprises imported cotton from overseas markets under tariff quota to guarantee their raw material supply.

 

In May, international cotton price declined further, affected by a series of negative factors of global economy. Cotton import in China was in high momentum encouraged by the kept-enlarging international and domestic cotton price gap as well as the second round of cotton import quotas.

 

In the 2011/2012 cotton year, cotton import in China has already accumulated to 5.705 million tons, ascending by 102% year-on-year markedly.

 

In the first three quarters of 2012, China imported 1.088 million tons of cotton yarn from overseas markets, increasing by 74% comparing with the same time of 2011.

 

According to monthly cotton yarn import statistics, in each month of 2012 the import volume saw a continuously increase. The price gap between international and domestic cotton yarn products would be considered as the key causation.  

 

The import of cotton yarns is beyond the limitation of quotas. Therefore, at the time when the international cotton price is below that in domestic Chinese markets, cotton yarn price in overseas markets is with comparatively absolute advantages. In order to reduce the production cost and enhance the products market competitiveness, domestic Chinese enterprises show more and more enthusiasms in importing cotton yarn from abroad. Besides, along with the declining raw material prices, international cotton yarn price also represented a trend of downturn.  

 

China mainly imported cotton yarn from Pakistan and India, which mainly feature low-count cotton yarn with obviously price advantages.

 

In the first nine months of 2012, the imported cotton yarn from India and Pakistan accounted for 60% of the total amount: of them, the import from Pakistan was 395,000 tons, and import from Indian reached 223,000 tons.  

 

Last October, according to statistics, in China, the price of 32-count pure cotton yarn without tax was 1000 yuan/ton higher than that of the yarn from Pakistan. And the price gap for low-count cotton yarn was much more obvious.

 

From Jan. to Sep. 2012, the export of cotton yarn totalized 325,000 tons, increasing by 3% comparing with the same period of time in 2011.

 

In terms of different cotton yarn products, the export of pure cotton carded yarn and blended yarn, which owns comparatively competitiveness in overseas markets, contributed a lot to the positive growth of the overall cotton yarn export volume markedly.

 

Whereas, for pure cotton combed knitting yarn, because of its high cost, the export saw a negative growth of 17%.

 

In the first nine months of 2012, Hong Kong still ranked at the first place among other overseas markets with the largest volume of China’s mainland cotton yarn products, which accounted for nearly 43% of the total China’s mainland export. However, the cumulated export volume to Hong Kong market descended slightly with a year-on-year negative growth of 5.5%.

 

Vietnam was the second largest export market of China’s cotton yarn products, with a total export volume of 43,000 tons, representing a sharp increase of 232.0% year-on-year. Besides, the export to Bengal also saw a positive growth. And in Asian area, the export to Korea declined with a margin of 50%.

 

As usual, cotton fabrics are the main drives for China’s cotton products export.

 

In the first three quarters of 2012, China’s cotton fabrics export arrived at 5.78 billion meters, increasing by 4.0% comparing with the same period of time in 2011. Comparing with the previous two years, the export in each month preserved a stable export volume.

 

However, since the year of 2011, the export went into a downturn period with an overall weakness export price. In 2012, the growth margin of cotton fabrics export volume gradually declined. Especially in last September, the export volume of pure cotton denim and yarn-dyed fabrics decreased by 18% and 8% year-on-year, respectively.  

 

The export markets of China’s cotton fabrics mainly located in Southeast Asian areas. As same as the year of 2011, in 2012, Vietnam and Bengal were the top two export markets of China’s cotton fabrics, with a total volume of 580 million meters and 540 million meters, and increasing by 14.3% and 7.0% year-on-year respectively.

 

Besides, Togo and Philippines also showed strong market demand of Chinese cotton fabrics, with a year-on-year volume growth rate of 47.6% and 107.9% respectively. As less influenced by the international downturn environment, in Southeast Asian areas, the demand of China’s cotton fabrics did not see significantly decrease.

 

From Jan. to Sep. 2012, China imported 620 million meters of cotton fabrics from overseas markets, ascending by 11.5% comparing with the same time of 2011. Of them, the import of pure cotton gray goods reached 270 million meters, with a year-on-year fast rise of 95%. Whereas, the import of other cotton fabrics products saw a negative growth.

 

In terms of import markets, China imported from Pakistan with the largest volume of cotton fabrics: In the first three quarters of 2012, the import totalized 220 million meters, ascending by 160% comparing with the same time in 2011, which took a proportion of 35% of the total import.

 

Furthermore, the import from Indonesia rose by 143% year-on-year. And the import from Japan, Korea, Hong Kong, and Chinese Taiwan also saw a year-on-year increase around 10% respectively, which mainly focuses on the import of high-level cotton fabrics products. 

 

 

All in all, the enlarging gap between domestic and overseas cotton price was the essential reason influencing the import and export of cotton industry in China. Recently, the international market demand is uncertain, it is estimated that China’s cotton textiles as well as downstream cotton products would still encounter challenges and pressure in overseas export market.