China's cotton yarn import data for May 2026 reveals a clear divergence. Customs statistics show total imports of approximately 172,200 tons, down 14.03% month-on-month but up 71.75% year-on-year. Yarn from Vietnam and India fell 11.83% and 29.38% month-on-month respectively, while Pakistani yarn imports reached about 21,310 tons, up 0.01% month-on-month and surging 80.36% year-on-year. This contrast suggests that amid the volume-price decline of open-end spinning yarn, Pakistani yarn is emerging as one of the few varieties maintaining growth momentum.
Background
The counter-trend strength of Pakistani yarn is not accidental. Industry analysis attributes it to the US-Israel-Iran conflict, which redirected some low-margin textile orders from Southeast Asia back to China, directly boosting demand for Pakistani cotton yarn. Concurrently, the continuous depreciation of the Pakistani rupee has significantly enhanced its international price competitiveness. Weak domestic demand in Pakistan has forced mills to increase exports, further driving up volumes. The bilateral trade in cotton yarn and fabric between China and Pakistan has formed a "two-way street," with advantages such as short transport distances and stable cotton blending reinforcing Pakistani yarn's market position.
Feedback from weaving mills and yarn traders in Guangdong, Jiangsu, Zhejiang, and Shandong indicates slow inquiry and transaction activity for bonded and forward open-end yarn. FOB/CNF/CIF quotes for open-end yarn from Vietnam, Indonesia, Malaysia, and India continue to edge down, while shipments of Pakistani 8S-21S siro yarn have not weakened significantly. This suggests that in a pressured open-end market, Pakistani yarn maintains relatively stable sales due to cost and channel advantages.
Industry Impact
From the upstream raw material side, Pakistani cotton prices saw a continuous sharp correction in mid-June. Combined with rising mill operating rates after the easing of energy and power supply crises, export pressure on cotton yarn has increased. The medium-term depreciation trend of the rupee against the dollar makes importers more inclined to wait for opportunities to replenish Pakistani yarn stocks. A Zhejiang-based textile import-export company noted that market expectations of US tariff hikes on Chinese goods under Section 301 in July are further dampening enthusiasm for open-end yarn purchases.
For domestic weaving enterprises, the sustained strength of Pakistani yarn means the supply landscape for low-to-mid count yarn is being reshaped. Factories that previously relied on Vietnamese and Indian open-end yarn are shifting more purchase orders to Pakistan. This shift affects not only short-term procurement costs but also long-term supply chain stability assessments. As Southeast Asian order transfers enter their final phase and domestic winter-spring orders have yet to be placed, the market is in a typical "gap" period.