Pakistan Yarn Breaks Through: Changing Landscape of Open-End Spun Imports

In May 2026, China imported approximately 172,200 tons of cotton yarn, a 71.75% year-on-year surge but a 14.03% month-on-month decline. A more telling structural shift lies in the country breakdown: Pakistani yarn imports edged up 0.01% month-on-month but skyrocketed 80.36% year-on-year, capturing a 12.37% share, while Vietnam and India saw their shares drop to 47.63% and 13.02%, respectively.

Three Drivers Behind Pakistan’s Surge

Pakistan’s strong performance is no accident. First, the Pakistani rupee’s persistent depreciation against the U.S. dollar directly lowered export prices, giving it a clear edge in price-sensitive low-to-mid count yarn segments. Second, weak domestic demand forced mills to ramp up exports, with China—the world’s largest cotton yarn importer—as the natural destination.

The third factor involves geopolitical order shifts. Conflicts in the Middle East redirected some low-margin, low-count textile orders from Southeast Asia back to China, creating demand for cost-efficient raw materials. A Zhejiang-based trading firm noted that falling Pakistani cotton prices since mid-June, combined with improved mill utilization after energy supply stabilization, have increased export pressure, offering a buying window for Chinese importers.

Open-End Spun Market Under Pressure

In contrast, the open-end spun market remains sluggish. Weaving mills and traders in Guangdong, Jiangsu, Zhejiang, and Shandong report slow inquiries and transactions for bonded and forward cargoes. The tail end of Southeast Asian order transfers, absence of domestic winter-spring orders, and expectations of U.S. 301 tariffs in July have dampened buying appetite. FOB/CNF/CIF quotes for open-end yarn from Vietnam, Indonesia, Malaysia, and India continue to edge down, while Pakistan’s 8S-21S siro-spun yarn shipments remain resilient.

Implications for Chinese Buyers

This shift reflects a rebalancing of the global cotton-spinning supply chain. Pakistan’s competitiveness extends beyond price to include stable cotton blending and shorter transit times, thanks to the established China-Pakistan yarn and fabric trade corridor. For Chinese weaving mills, Pakistani siro-spun yarn is emerging as a viable alternative amid the broader open-end market downturn.

For Procurement Teams - Monitor Pakistani rupee trends; locking in forward contracts during depreciation cycles can further reduce costs. - Prioritize 8S-21S siro-spun yarn for low-to-mid count, low-margin orders. - Hedge against potential inventory buildup from July U.S. tariffs by placing smaller, phased orders.

For Foreign Trade Companies - Leverage the China-Pakistan yarn trade channel to establish direct, long-term sourcing relationships and cut intermediary margins. - Prepare Pakistani yarn stocks in advance to serve redirected Southeast Asian orders with differentiated supply. - Track Pakistani cotton price corrections closely and negotiate during mill utilization peaks and export pressure windows.