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NEW DELHI, Nov 9 (Commoditiescontrol) : The US Department of Agriculture (USDA) said in its report on Thursday that China’s recent cotton fabric shipments have trended lower at an average 2 million metric tons per year compared to roughly 9.0 million tons for synthetics.
This is mostly due to lower relative prices for synthetics and a decade of robust growth in China’s production capacity.
China is the largest producer and exporter of both synthetic and cotton fabrics, used to manufacture apparel and home textiles.
The U.S. Uyghur Forced Labor Prevention Act (UFLPA) and changes in consumers’ preferences have also played a role.
Since China is the largest producer of both synthetic and cotton textiles (i.e., yarn and fabric), the country has a significant impact on fiber production and consumption trends.
According to the International Cotton Advisory Committee’s (ICAC) 2023 report World Textile Demand, the global consumption of synthetic fibers climbed each year since 2008; meanwhile, 2023 global cotton consumption is forecast at roughly the same level as it was 15 years ago.
China is by far the largest contributor to the growth in synthetic fiber production to meet rising global consumption.
China’s increasing domestic supply of synthetic yarns (which are woven or knitted into fabric) and their competitive price relative to cotton yarn has also helped drive greater demand.
The price of polyester yarn relative to cotton yarn has fallen over the past decade. For example, the price of Chinese polyester yarn averaged 72 cents per pound last month, 76 cents lower than the cotton yarn price of 148 cents.
Just 5 years ago, the premium for cotton yarn was roughly 60 cents, significantly lower relative to levels witnessed in the last 3 years. Persistently higher cotton yarn prices relative to polyester is driving downstream participants in the textile supply chain to opt for the less expensive synthetic inputs.
The Uyghur Forced Labor Prevention Act (UFLPA) has also impacted demand for cotton fabrics from China. U.S. importers of apparel and home textiles are barred from sourcing products or products derived with inputs from Xinjiang (which is roughly one-fifth of the world’s cotton lint supply and 90 percent of China’s production).
Thus, major importers including Vietnam and Bangladesh have decreased their recent purchases due to the greater susceptibility of Chinese fabric containing cotton fiber from the Xinjiang autonomous region.
Consumers’ growing preference for athleisure and less expensive performance fabrics are another factor spurring greater synthetic fabric exports. Recent business models characterized as “fast fashion” are more relevant to the inclusion of synthetics given the significantly lower cost relative to cotton fiber, and consumers are increasingly opting for the lower cost and expansive selection.
For the past decade, U.S imports and consumer purchases of synthetic apparel and home textiles have made significant inroads relative to cotton fiber.
China will continue to drive global trends in fiber use throughout the apparel and home textile supply chain. Synthetics relative to cotton are increasingly supplying a growing global population and economy, and China’s dynamic export market for synthetic fabrics is one indicator of this growing trend.
The competition with synthetics is another factor capping significant growth in China’s 2023/24 consumption level at 37.5 million bales, which is unchanged from the previous year and nearly 4.0 million bales below 3 years earlier.
(By Commoditiescontrol Bureau)
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