Imported Cotton Yarn Landscape Shifts: Indian Yarn Surges, Vietnamese Share Under Pressure

In June 2026, China imported 168,090 tons of cotton yarn, a year-on-year surge of 54.21%, continuing the strong growth trend seen in the first half of the year. However, more noteworthy than the total volume is the ongoing restructuring of import sources.

Indian Yarn Surges, Vietnamese Share Slips

Customs data shows that Indian cotton yarn imports in June reached 21,940 tons, a staggering 386.89% year-on-year increase, accounting for 13.05% of total monthly imports. In contrast, the long-dominant Vietnamese yarn, with 87,870 tons imported (52.28% share), has seen its share decline from 58.8% in 2025 and 55% in Q1 2026. Imports from Pakistan, Uzbekistan, Bangladesh, and Malaysia are gradually rising.

This structural shift signals that domestic weaving mills and traders are diversifying their yarn quality and specification requirements, reducing reliance on any single source. While Vietnamese yarn has long dominated with reliable delivery and cost-effectiveness, Indian yarn is now aggressively capturing market share with expanded capacity and competitive pricing.

Divergent Export Prices: India Prepares for Hike, Others Wait

Market feedback reveals clear divergence in export price trends across origins. Vietnamese open-end and C32S/C40S high-spec yarns have seen increased arrivals, with major mills and branded suppliers slightly raising FOB/CNF/CIF quotes, indicating pricing power in premium segments.

For Indian yarn, despite rising domestic S-6 cotton prices and CCI auction floor prices since mid-July, export quotes have remained largely stable, with only some second- and third-tier brands offering slightly lower prices. However, several Indian mills and exporters have notified buyers that bonded and shipment quotes will be adjusted soon, urging early orders to lock in costs. This suggests a window for Indian yarn price hikes is opening, though successful transmission to domestic buyers depends on downstream acceptance.

Following modest price increases, Pakistani and Uzbek yarn exports have seen inquiries and shipments slow, entering a brief wait-and-see phase as the market digests the changes. In contrast, Indonesian low-count cotton yarn and 21S-45S T/C yarn have seen active trading due to strong cost-performance and timely delivery, emerging as a bright spot in this round of competition.

Deep Impact of Import Source Diversification

The changing structure of import sources is not a short-term fluctuation but the result of multiple factors. First, Indian yarn production recovery and export policy adjustments have restored its competitiveness. Second, domestic weaving mills are proactively diversifying supply channels to mitigate risk. Third, different origins offer yarns with varying counts, strength, and evenness, aligning with the diverse order requirements of downstream fabric and garment makers.

For Vietnamese mills, losing share means they must accelerate product upgrades and cannot rely solely on low prices. For Indian mills, whether price hike expectations materialize depends on maintaining quality and delivery consistency. Pakistani and Central Asian mills face a more delicate situation, with limited room for price increases but mounting cost pressures.

Practical Recommendations

For Buyers - Monitor Indian yarn export price movements closely. If hike signals are clear, consider placing orders early to lock in current quotes and avoid cost increases. - Establish a comparison mechanism between Vietnamese and Indian yarns, evaluating based on count, quality, and delivery terms rather than defaulting to a single source. - Be patient with Pakistani and Uzbek yarn price increases; wait for market digestion before deciding on follow-up purchases.

For Foreign Trade Enterprises - When negotiating with Indian mills, emphasize that while Indian yarn's share is rising rapidly, excessive price hikes could push buyers toward other origins, using this as a bargaining chip. - Vietnamese mills should proactively offer differentiated products such as high-count, high-density, and combed yarns to alleviate share erosion from Indian yarn. - Monitor the active trading of Indonesian T/C yarn; if the trend continues, consider expanding this category's presence in Southeast Asian markets.