Cotton Yarn Exports from Pakistan in 2013

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Total world trade of cotton-rich textile yarns (comprising >/=85% cotton) stood at around US$14.6 billion in 2013. With around US$2.2 billion worth of exports, Pakistan managed to get a share of approx. 15% in the global trade of cotton-rich yarns. That makes Pakistan the second largest world exporter of cotton yarns in the world. India stood at the top of the list with 33% share in the global cotton yarn trade. The third largest exporter was China with a share of 13%, followed by USA, Viet Nam, Turkey, Uzbekistan, Indonesia and Korea (Table 1). According to USDA statistics, China has been the largest producer of cotton fiber in 2013-14 with 32 million 480 lb. bales, followed by India (29.5 million bales), USA (12.9 million bales) and Pakistan (9.5 million bales). Hence, Pakistan was the fourth largest cotton producer and the second largest cotton yarn exporter in 2013.

In terms of growth in exports as compared to the previous year, India again stood at the top of the list with 51.28% increase, followed by Thailand (50.92%), Viet Nam (47.1%), Indonesia (36.42%) and Uzbekistan (23.42%). Pakistan’s cotton yarns exports grew just 4.89% as compared to the last year, which is far less than the overall growth of 9.83% in the world cotton yarn trade. Annual growth percentage in the export value from 2009 to 2013 has been 33%, 14%, 36%, 30, 32% for India, Pakistan, Viet Nam, Korea and Turkmenistan respectively. Countries with higher growth rates may pose a challenge to Pakistan’s share in the world market in the coming years.

China was the largest importer of cotton yarns in 2013 with 43% share of imports followed by Hong Kong and Bangladesh. Chinese cotton yarn market has been steadily growing over the last few years, and in 2013 it recorded a growth of 40% as compared to the previous year. Other markets have been fluctuating at modest figures. EU28 is not a huge market for cotton yarns, and accounts for a little less than 12% of the total global demand of cotton yarns. Asia Pacific Trade Agreement (APTA) Countries comprising China, Bangladesh, Korea, Sri Lanka and India account for more than 50% cotton yarn market of the world.

Table 1 Top Cotton Yarn Exporting Countries (Source: ITC)

No Exporters Exported value in 2012, US$ Thousands Exported value in 2013, US$ Thousands % Change
1 World 13,286,086 14,592,634 9.83
2 India 3,155,245 4,773,111 51.28
3 Pakistan 2,102,655 2,205,411 4.89
4 China 1,670,368 1,878,900 12.48
5 USA 1,244,610 1,227,382 -1.38
6 Viet Nam 648,277 953,590 47.10
7 Turkey 393,114 397,154 1.03
8 Uzbekistan 320,451 395,503 23.42
9 Indonesia 272,568 371,834 36.42
10 Korea, Republic of 249,306 272,066 9.13
11 Taipei, Chinese 244,698 234,570 -4.14
12 Egypt 196,329 222,322 13.24
13 Italy 206,250 206,831 0.28
14 Thailand 126,996 191,666 50.92
15 Turkmenistan 214,517 172,053 -19.80
16 Germany 138,597 134,805 -2.74
17 Others 2,102,105 955,436 -54.55

 

In 2013, around 70% Pakistani cotton yarn was exported to China, followed by 8% to Hong Kong, 5% to Bangladesh, and 2% each to Korea, Portugal, Turkey and Japan

The unit value of Pakistani yarn stood at US$3065/ton, which is lower as compared to that of some other competitors such as India (US$3506/ton), China (US$4903/ton) and Egypt (US$7653/ton). If we look at the figures for various yarn categories given in Table 2, it can be noticed that Pakistan’s major contribution of cotton yarn exports is in ‘520512 category, which comprises carded single yarns of coarse to medium counts (dtex). Furthermore, Pakistan’s export share in the combed yarn categories is also poor. By focusing more on the finer yarn counts and combed yarn categories, the unit value of Pakistani yarns may be increased in future. Since the prevalent Pakistani cotton varieties are suitable mostly for producing coarse and medium yarn counts, government policies to facilitate the import of finer long staple cotton and to incentivize the export of finer and/or combed yarn counts may help in increasing the unit value of Pakistani yarn exports.

 

Table 2 Pakistan’s Yarn Exports (containing >/=85% cotton) in Different Categories (Source: ITC)

Code Yarn Category World,$ Thousands Pak,$ Thousands Pak, %
‘520511 Single, Carded,>/=714.29 dtex, nt put up 771,854 155,451 20.14
‘520512 Single, Carded,714.29 >dtex>/=232.56, not put up 4,378,614 1,436,431 32.81
‘520513 Single, Carded,232.56>dtex>/=192.31, not put up 687,670 61,168 8.89
‘520514 Single, Carded,192.31 >dtex>/=125, not put up 1,117,669 7,912 0.71
‘520515 Single, Carded,<125 dtex,nt put up f retail sale 21,494 830 3.86
‘520521 Single, Combed,>/=714.29, not put up 176,438 7,123 4.04
‘520522 Single, Combed, 714.29 >dtex>/=232.56, not put up 1,123,131 141,701 12.62
‘520523 Single, Combed, 232.56 >dtex>/=192.31, not put up 1,888,114 48,503 2.57
‘520524 Single, Combed, 192.31 >dtex>/=125, not put up 1,817,661 25,010 1.38
‘520526 Single, Combed, 125-106 dtex,not retail 189,493 7,192 3.80
‘520527 Single, Combed, 106- 83 dtex,not retail 207,781 1,124 0.54
‘520528 Single, Combed, <83.33 dtex,not retail 157,666 3,579 2.27
‘520531 Multi- Carded,>/=714.29 dtex, not put up, nes 82,443 37,715 45.75
‘520532 Multi- Carded,714.29 >dtex>/=232.56,nt put up,nes 469,875 210,097 44.71
‘520533 Multi- Carded,232.56 >dtex>/=192.31,nt put up,nes 85,259 6,369 7.47
‘520534 Multi- Carded,192.31 >dtex>/=125,nt put up, nes 202,220 14,375 7.11
‘520535 Multi- Carded, <125 dtex, not put up, nes 5,945 618 10.40
‘520541 Multi-, Combed, >/=714.29 dtex, not put up, nes 22,163 177 0.80
‘520542 Multi-, Combed,714.29 >dtex>/=232.56,nt put up,nes 250,061 21,031 8.41
‘520543 Multi-, Combed,232.56 >dtex>/=192.31,nt put up,nes 132,606 6,131 4.62
‘520544 Multi-, Combed,192.31 >dtex>/=125,not put up,nes 364,156 11,253 3.09
‘520546 Multi-, Combed, 125-106 dtex,not ret. 16,791 536 3.19
‘520547 Multi-, Combed, 106- 83 dtex,not ret. 75,473 306 0.41
‘520548 Multi-, Combed, <83.33 dtex,not ret. 348,068 781 0.22
TOTAL 14,592,645 2,205,413 15.11

 

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