Against the background of a sharp decline in textile exports this year, the refined cotton export market got off to a steady start, especially on the basis of high growth in 2022, it still showed strong resilience in development.

 

According to customs data, refined cotton export of China (cotton linter pulp, including specialty pulp, the same below) in Feb 2023 was 7.139kt, a month-on-month increase of 4.5% and a year-on-year increase of 0.26%.

 

The cumulative export volume from Jan to Feb was 13.972kt, a year-on-year decrease of 6.62%. Although the export volume declined in the first two months of 2023, the foreign trade market still showed a certain degree of resilience despite the poor macro environment and frequent risk events this year.

 

In the case of high export growth in 2022, the average export price of refined cotton was at a high level of around $2,300/mt before Sep, but affected by various factors afterwards, the price fell rapidly. The average export price in Feb this year was $1,900/mt, an increase of 8.54% month-on-month and a decrease of 17.86% year-on-year.

 

The concentration of the origins was relatively high. Anhui, Shandong, Hubei and Jiangsu ranked the top four places in Feb and Jan-Feb, accounting for about 88% of total exports. Shandong Silver Hawk, Anhui Snow Dragon, Hubei Jinhanjiang and Nantong Yaohua are outstanding representative enterprises in the export market.

 

In terms of destinations, China exports refined cotton to nearly 30 countries (regions). In Feb and Jan-Feb this year, South Korea, Japan, Brazil, Thailand and the Netherlands ranked the top five places. The exports to the top five destinations took up 73.4% of the total in Feb, and the percentage in Jan-Feb was 76.8%.

 

To sum up, when there are frequent macro risk events this year, China's refined cotton export market has a relatively stable start, especially when the annual export volume in 2022 breaks through 80kt and hits a record high of 82kt, it still shows a certain degree of resilience. Last year, the average export price basically fluctuated at a high level of $2,300/mt, and dropped somehow this year, but still higher than the level of the same period in previous years. The concentration of origins and destinations is relatively high. Anhui and Shandong continue to be in the leading position, and the export to South Korea is outstanding. Brazil, Japan, Thailand and the Netherlands are firmly ranking the top five places in the export market.