The imported cotton yarn market is undergoing a significant price revaluation. Since early July, ex-plant quotes from major producing countries including India, Pakistan, Vietnam, and Bangladesh have risen in unison. Price increases for C32S and above ring-spun, compact, and combed yarns under FOB, CNF, and CIF terms are particularly pronounced, while adjustments for low-count open-end yarns remain relatively moderate.
This round of price hikes is driven by multiple factors: a rebound in ICE cotton futures, a broad recovery in textile and garment exports across Southeast Asia, and consecutive substantial increases in India's domestic S-6 spot and CCI auction floor prices—all contributing to a cost-push logic.
Vietnamese Yarn: Dual Advantages of Cost and Geopolitical Dividends
Among various supplying countries, Vietnamese yarn stands out. According to feedback from a large light-textile import-export company in Shaoxing, inquiries and actual shipments of Vietnamese yarn in the first half of July notably outperformed those from India, Pakistan, and Uzbekistan. This phenomenon is not accidental but determined by two key variables.
First, Vietnamese mills have been slower and more restrained in adjusting their ex-plant quotes compared to other Southeast Asian mills. For specifications up to C40S, Vietnamese yarn retains a clear cost-performance advantage, directly attracting buyers. Second, geopolitical factors are reshaping trade cost structures. The breakdown of US-Iran peace talks and heightened tensions in the Strait of Hormuz have driven crude oil, energy, and chemical prices sharply higher, with ocean freight costs also surging again. For mills in India, Bangladesh, and Malaysia reliant on sea transport, upward revisions to CNF and CIF quotes have become necessary to absorb the triple pressure of raw material, production, and shipping costs.
In contrast, Vietnam benefits from a significant buffer in logistics costs thanks to its road and rail transport networks with China. This means that even amid severe global shipping disruptions, Vietnamese yarn can maintain relatively stable landed costs and delivery timelines—a highly attractive certainty for weaving mills and traders.
Industry Impact: Declining Port Inventories and the 'Rush to Export' Effect
On the supply side, arrivals of Uzbek cotton yarn, Pakistani siro-spun yarn, Taiwanese open-end yarn, and Indonesian/Vietnamese polyester-cotton blends at ports have been steadily declining over the past fortnight. Concurrently, some coastal textile and garment factories are experiencing a short-term 'rush to export' phenomenon. The combined effect of supply contraction and demand surge has led to a steady decline in port yarn inventories.
Falling inventories are a positive signal for traders, suggesting that previously accumulated stock pressure is easing. However, this could also exacerbate short-term supply tightness, providing further support for future price increases. Buyers should be aware that current low inventories may not persist. Should geopolitical tensions ease or ocean freight costs decline, Vietnamese yarn's cost advantage could diminish, and Indian yarn supply may recover quickly.