China's latest customs data for May 2026 reveals a clear structural divergence in cotton yarn imports: total imports fell 14.03% month-on-month to 172,200 tons, but still surged 71.75% year-on-year. More notably, amid the overall contraction, Pakistani cotton yarn imports bucked the trend with a marginal 0.01% monthly increase and an 80.36% year-on-year surge, making it the only major source to post positive monthly growth.
Background
Traditional heavyweights Vietnam and India saw declines. Vietnamese imports dropped 11.83% to 82,050 tons, while Indian imports plunged 29.38% to 22,430 tons. In contrast, Pakistani imports reached 21,310 tons, lifting its market share from roughly 7% a year ago to 12.37%. Industry data indicates that Pakistan's performance is driven by multiple factors.
The Pakistani rupee's medium-term depreciation against the dollar has boosted export price competitiveness. Weak domestic demand has pushed mills to seek overseas markets. Bilateral trade facilitation mechanisms for cotton yarn and fabric, along with stable cotton blending and logistical advantages, further strengthen Pakistani yarn's cost-effectiveness.
Industry Impact
The air-jet spun yarn market is under dual pressure of declining volumes and prices. Feedback from weaving mills and traders in Guangdong, Jiangsu, Zhejiang, and Shandong indicates that Southeast Asian transfer orders are winding down, while domestic winter-spring orders have yet to materialize. Concerns over potential U.S. tariff actions under Section 301 in July are dampening inquiries and transactions for bonded and forward air-jet spun yarn. FOB/CNF/CIF quotes from Vietnam, Indonesia, Malaysia, and India continue to edge lower.
By contrast, shipments of Pakistani 8S-21S siro spun yarn remain relatively robust. A Zhejiang-based textile trading company noted that since mid-June, Pakistani cotton prices have corrected significantly, and mill operating rates have recovered as energy and power supply constraints eased. This has increased export pressure on Pakistani mills, creating a potential restocking window for importers.
For buyers, this means intensified price competition in the near term. The sustained rise of Pakistani yarn is reshaping the regional pricing structure for China's imported cotton yarn, potentially triggering a shake-up in the low-to-mid count segment. Foreign trade firms must watch rupee volatility and the demand dampening effect of U.S. tariff policies.