As expected in our last report earlier this year, a radical change may now be observed on US import market for cotton sheets in category 361.
After only rising 17.50% in 2004, shipments nearly doubled in the first seven months this year in volume terms.
US imports also surged in value terms from US$324 million in January-July 2004 up to US$537 million in the same period of 2005.
Such a boom in shipments is mainly due to the elimination of quotas as of January 1st.
The world specialist for cotton sheets, Pakistan took the main advantage of quotas' removal with a 539% jump in US imports from this country in volume terms.
Pakistani suppliers are actually confronted with strong difficulties on the EU market where they were imposed anti-dumping duties since last year.
They apparently accepted sharply cutting prices on the US market to resist Chinese competition, as a consequence.
Average unit value of imported Pakistani sheets fell from US$6.97 per item in January-July 2004 down to US$4.53 in the same period this year, a 35% decline.
By comparison, Chinese prices decreased by 37% to US$6.94 per piece. Pakistani prices remained 35% below Chinese prices, as a result (see "advantage to China" column in our last table below).
Chinese shipments also boomed, however, rising 290% in volume terms over the period. China's share of the US import market rose from 9.36% to 18.83% while Pakistani share jumped from 11% to 36%.
India was the third supplier in January-July, clearly losing ground on the volume market.
Indian suppliers are shifting to higher-valued products when compared with Pakistani competitors.
Average price of imports from India rose 5% over the period to US$10 per item, sharply above Pakistani and Chinese prices and not far from Portuguese prices.
India remains the second largest supplier in US$ terms as a result, with its share rising from 43.60% to 52.20%.
Behind the three textile leaders, Thailand lost substantial shares in the market with its shipments falling 39% in volume terms after doubling in 2004.
Portugal and Mexico benefited from surprisingly strong growth in sales, such as Bahrain that took advantage of its duty-free agreement with the United States.
