Shifting Winds in Imported Yarn: Pakistani OE Yarn Gains Ground as Market Reshuffles

In May 2026, China's total cotton yarn imports fell 14% month-on-month to 172,200 tons, but still surged 71.75% year-on-year. Behind the headline number, a structural shift is unfolding: Pakistani yarn imports reached 21,310 tons, flat month-on-month but up 80% year-on-year, while imports from Vietnam and India dropped 11.8% and 29.4% respectively. Pakistani yarn is rewriting the low-count import map with real volume gains.

Three Drivers Behind Pakistan's Rise

First, the Pakistani rupee's sustained depreciation against the U.S. dollar has lowered export costs, making its FOB quotes more attractive than Southeast Asian rivals. Second, weak domestic demand has forced mills to push inventory overseas, with China as the natural destination. Third, geopolitical tensions in the Middle East have redirected some low-margin apparel orders back to China, and Pakistani yarn—price-sensitive and logistically efficient—has filled the gap. The China-Pakistan cotton yarn and fabric trade has become a 'two-way street,' with shorter transit times and smoother customs clearance reinforcing supply stability.

OE Yarn Faces Price-Volume Squeeze, Siro Spinning Holds Up

Open-end (OE) yarn is experiencing a 'double whammy' of falling prices and sluggish demand. Mills in Guangdong, Jiangsu, Zhejiang, and Shandong report slow inquiries and weak transactions for both port-bonded and forward OE yarn. FOB/CNF/CIF quotes from Vietnam, Indonesia, Malaysia, and India continue to edge lower, and traders remain cautious. In contrast, Pakistani 8S-21S siro-spun yarn maintains steady shipments, suggesting that demand has not collapsed but shifted. Low-count OE yarn suffers from oversupply and thin margins, while siro-spun yarn—favored for its evenness and downstream performance—remains a 'must-have' for weaving mills.

Price Outlook and Procurement Window

A key variable looms: Pakistani cotton prices have corrected sharply since mid-June. With energy supply stabilizing and mill operating rates rising, export pressure is mounting. This suggests further downside for Pakistani yarn FOB quotes in the near term. A Zhejiang-based textile trading firm told us it is waiting for the right moment to restock Pakistani yarn, betting on the rupee's medium-term depreciation trend. For the next 2-3 months, Pakistani yarn's cost advantage—especially in counts below 32s—could widen further.

Practical Recommendations

For Buyers - Monitor Pakistani cotton price trends; if domestic prices continue falling, lock in forward orders for Pakistani yarn, especially 8S-21S siro-spun varieties. - Reduce concentrated procurement of Vietnamese and Indian OE yarn; their price correction is not yet complete, and inventory pressure persists. - Stay on the sidelines for port-bonded OE yarn until the U.S. tariff decision in July clarifies the trade environment.

For Trading Companies - Adjust import mix to increase the share of Pakistani yarn in low-count categories, leveraging currency advantages to lower costs. - Beware of price wars in Southeast Asian OE yarn; avoid large stockpiles during a downward price cycle. - Build direct connections with Pakistani mills to bypass intermediaries and secure better CNF quotes and shipping schedules.