Cotton linter import in Nov drops to a record low since 2009

Cotton linter import of China has been decreasing sharply since the second half of 2022, which keeps hitting new lows within the year. In Nov, the import volume even sets a record low since 2009. Cotton linter import market witnesses huge volatility in 2022. The import volume is close to 17kt in Jan and May, but it keeps falling in the second half of the year, and the volume of Sep and Nov is less than 1/10 of that at the beginning of the year. In Nov, the import drops to 1.194kt, down 73.9% m-o-m and down 80.7% y-o-y, and the import price falls to a record low for more than 10 years.   Although cotton linter import price has seen a sharp decline in the second half of 2022, it has not set a record low. In Nov, the import price is $495/mt, up 16.1% m-o-m but down 14.3% y-o-y, which is much higher than that of 2019-2020. China mainly imports cotton linter from two countries including Turkmenistan and Tanzania in Nov, which respectively takes up 78% and 22% of the total during the month. Among the destinations, Shandong takes the leading position with the share of 78%, which is followed by Jiangsu.   In conclusion, cotton linter import is tolerable in the first half of 2022, and it is close to 70kt, while there is a sharp decrease in the second half of the year when the import volume continues to hit new lows within the year. In Nov, the reduction is caused by the epidemic control as well as the wait-and-see stance by the participants when new cotton linters are arriving both at home and abroad. In addition, downstream demand is lackluster, and the huge imports in the first half of the year need to be absorbed in the second half of the year. However, the end-user demand is recovering slower with the relaxing of epidemic prevention and control policy, so cotton linter import market is likely to warm up.