USA:Cotton Yarn Import Continues To Rise

Although Malaysia, Egypt and Brazil is fearing Mexico's combed cotton yarn. The cotton yarn imports of USA were seen surging for the first two months.

More than a surge of US fabric and knit apparel production, this rebound of cotton yarn imports reflects the simultaneous fall in US capacities, unable to compete with new investments in low-cost countries and confronted with a decline in downstream textile and apparel industries at home.

US imports of carded cotton yarns (category 300) rose more than 2% in volume terms in the January-February period, compared with a 2.54% decline experienced in 2002.

After last year increasing by 22% in volume terms, shipments from Canada were up 23.43% in the first two months of the year at 2.57 million kilos.

At the same time, Pakistan continued losing ground with a 12% decrease in volume terms on the US market for carded cotton yarns. As a result, Pakistani spinners could lose their first place in the coming months.

Shipments from Malaysia (+180%), from Turkey (+32%) and from Brazil (+72%) also surged, although from much lower levels.

Imports from Bahrain even boomed with a 1,037% increase in the January-February period. Bahrain is now the 8th largest supplier of carded cotton yarns in the United States.

Imports from Mexico continued decreasing at the same time after already falling in 2002.

Shipments from Egypt and Uzbekistan were also down at the same time but the decrease in sales of carded yarns could reflect an improvement in the mix with spinning industries in these countries progressively shifting to combed yarns.

As a result, US imports of combed cotton yarns from Egypt rose no less than 650% in the first two month of the year with Egyptian exporters now ranking fourth on a surging US market.

Total US imports of combed yarns were up 23.7% at the same time after already rising 28% in 2002. Imports from Malaysia increased by 148% while shipments from Brazil and Uzbekistan were up 115% and 60%, respectively.

Switzerland is also doing well thanks to its high-quality production. Exports rose 1,500% in volume terms with average unit value of US$7.38 per kilo compared with an average unit value of US$2.95 for total imports.

Yarn prices remained at low levels although cotton prices were up more than 40% in the twelve past months.

A large series of supplying countries were even able reducing their prices, partly due to the fall in certain currencies. New investments also resulted in improved productivity and lower costs.