Recently, the international cotton yarn market has shown a complex trend. In July, China imported 107,000 tons of cotton yarn, a year-on-year decrease of 16% and a month-on-month decrease of 2%. The import share of Vietnamese yarn rose to 63%, while that of Uzbekistan cotton yarn dropped significantly.
Since late August, despite the volatile correction of ICE cotton futures and the implementation of the U.S. "reciprocal tariffs", the quoted prices of international cotton yarn remained firm. However, with the increasing arrival of air-jet spun yarn from India, Malaysia and other places, traders' confidence in maintaining high prices has weakened, and they are open to negotiating prices for large orders, actual orders and old customers.
Earlier, the U.S. imposed high tariffs on many countries, which restrained the demand for textiles and garments. To ease cost pressures, India abolished cotton import tariffs and agricultural infrastructure and development taxes from August 19 to September 30. In addition, the Federal Reserve Chairman indicated that the policy stance may be adjusted. The "Fed Watch" showed that the probability of a 25-basis-point interest rate cut in September rose to 91.1%, which had a certain impact on the international bulk commodity market, including the cotton market. With mixed bullish and bearish factors, international cotton prices maintained range-bound fluctuations, and the future trend of the international cotton yarn market remains uncertain.
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