The United States strangely reimposed a limit on imports of combed cotton yarns from China in category 301.
If surging shipments from China may effectively threaten US textile production in most sensitive apparel categories, there is no similar threat in sight with Chinese yarns.
US imports from China in category 301 were up 120% in volume terms in the first quarter to 612 tons, the US administration said on May 26 when requesting bilateral consultations with China and therefore triggering the quota period.
Imports from Pakistan however jumped 154% at the same time, and from substantially higher levels.
While China's share of the US import market rose from 1.89% in first quarter 2004 to only 3.13% in first quarter this year, Pakistan's share surged from 15.50% up to nearly 30%.
Prices of Chinese yarns fell, the Committee for the Implementation of Textile Agreements (CITA) said in its official notice.
All prices actually decreased in first quarter, compared with the same period last year. This is no surprise since world cotton prices were sharply down at the same time.
Import prices of Chinese yarns declined 26%, according to our statistical table below while average decrease for total US imports in category 301 was limited to 16.70%.
China actually offers lower prices than calculated by the CITA, at US$2.65 per kilo in first quarter.
CITA surprisingly announces a price of US$3.14 per kilo in its official notice.
The new US limit was set at 1,450 tons and would not be reached before mid-November according to our latest estimate, based on the level in January-April imports.
Pakistani spinners could warmly applaud the decision to reimpose the quota. They invested in large updated capacities and are currently developing their production of quality combed cotton yarns.
The United States tried to limit imports from Pakistan in category 301 by the end of last decade but was forced withdrawing the quota after the WTO condemned this safeguard action.
In addition to Pakistan, Canadian and Korean producers will possibly benefit from a new surge in orders from US yarn processors in coming months.
US imports from the two countries rose 362% and 130% in the first quarter, respectively reaching 14% and 9% of the market.
Indian spinners could continue enjoying a boom in sales to the US market.
Imports from India skyrocketed in first quarter, although still accounting for 1.85% of the US import market.
