Rayon yarn export of China drops for four consecutive months

Rayon yarn export of China has been falling for four consecutive months. China exports 11.352kt of rayon yarn in Sep 2022, down 28.11% y-o-y, including 7.055kt of single yarn and 1.124kt of ply yarn, respectively down 31.43% and 13.08% on yearly basis. Thus, the export of 100% rayon yarn occupies 72% of total rayon yarn exports. At the same time, the export of rayon blended yarn amounts to 3.173kt, down 24.61% y-o-y.

Rayon single yarn exported to five destinations (Brazil, Bangladesh, Pakistan, India and Vietnam) in Sep amounts to 6.017kt, down 35.98% y-o-y, accounting for 85% of total single yarn exports and the percentage has fallen notably. The export to the five countries keeps decreasing, especially that to India who used to rank the top place. Compared with the peak in May (15.676kt), the export to India has reduced by 90% to 1kt in Sep.

Rayon single yarn exported from Jiangsu, Zhejiang, Fujian, Xinjiang and Sichuan totals 6.833kt in Sep, taking up 97% of single yarn exports, down 17% m-o-m and down 32% y-o-y. The export of major origins generally slips, except for rising volume of Xinjiang.

In conclusion, the export of rayon yarn has been shrinking since May and it even hits new lows within the year in Sep, which has decreased by almost 60% compared with the peak in the middle of year. The reduction is manly attributed to a sharp decline of export to Bangladesh and India by 70-90% for each. The foreign trade of rayon yarn is not optimistic when sales in China local market remain sluggish.