China's General Administration of Customs data shows that in May 2026, China imported approximately 172,200 tons of cotton yarn, down 14.03% month-on-month but up 71.75% year-on-year. Behind this data lies a significant divergence in the import market: imports from Vietnam and India fell 11.83% and 29.38% month-on-month respectively, while imports from Pakistan edged up 0.01% month-on-month and surged 80.36% year-on-year.
Why Pakistani Yarn is Gaining Ground
The strong performance of Pakistani cotton yarn is no accident. First, the continued depreciation of the Pakistani rupee against the US dollar has directly lowered export prices, boosting international competitiveness. Second, weak domestic textile demand in Pakistan has forced mills to shift more capacity to export markets, increasing supply. Additionally, the 'two-way trade' of cotton yarn and fabric between China and Pakistan is accelerating, with trade facilitation measures reducing transaction costs.
Meanwhile, some Southeast Asian low-to-mid count, low-margin textile and garment orders have returned to the Chinese market due to geopolitical tensions like the US-Israel-Iran conflict. These orders align well with the product positioning of Pakistani yarn, providing demand-side support.
Air-jet Spun Yarn Faces a Double Whammy
In contrast to the activity in Pakistani yarn, the air-jet spun yarn market is experiencing a downturn. Feedback from weaving mills and yarn traders in Guangdong, Jiangsu, Zhejiang, and Shandong indicates that inquiries and transactions for bonded and forward-shipment air-jet spun yarn are sluggish. FOB/CNF/CIF offers from Vietnam, Indonesia, Malaysia, and India are seeing minor corrections.
This phenomenon is driven by the tail-end of Southeast Asian order transfers, while domestic winter-spring orders have yet to be placed. Concerns over potential US tariff increases on Chinese imports based on the Section 301 investigation results in July are also prompting downstream buyers to adopt a wait-and-see approach, leading to shrinking demand for air-jet spun yarn.
Steady Shipments of Siro Spun Yarn, Opportunities from Falling Pakistani Cotton Prices
Notably, shipments of Pakistani 8S-21S siro spun yarn have not weakened significantly, showing demand resilience in specific count ranges. A Zhejiang-based textile import-export company noted that since mid-June, Pakistani cotton prices have seen consecutive sharp corrections. Coupled with rising mill operating rates as energy and power supply crises ease, export pressure is mounting, creating a potential restocking window for buyers holding cash.
The medium-to-long-term depreciation trend of the Pakistani rupee suggests that the price advantage of Pakistani yarn could expand further. For Chinese buyers, now may be a good time to position for Pakistani yarn at lower prices, though currency and geopolitical risks should be monitored.