Core Market Dynamics
The European Union issued a preliminary anti-dumping ruling on Chinese polyamide yarn on March 27, with provisional duties ranging from 57.7% to 90.1%. India decided on March 19 to impose anti-dumping duties of $386 to $1,071 per ton on Chinese viscose filament yarn for five years. Indonesia will extend its safeguard duties on imported related yarns starting May 22.
Policy Responses and Market Changes
Starting January, China has precisely adjusted tariffs, lowering import duties on strategic inputs like specialty yarns and chemical fiber filaments to enhance manufacturing competitiveness. This policy benefits economies with advanced material technologies like Japan and South Korea. Southeast Asian countries are also expected to increase exports to China under the RCEP framework.
Bangladesh's yarn import restrictions have caused industry division. With a domestic yarn self-sufficiency rate of only 35-40%, restrictions on land port imports may extend delivery cycles, weakening the global competitiveness of its garment exports.
Key Data Insights
In 2025, China's yarn exports showed a pattern of "increasing volume but decreasing price": export volume grew 10.9% to 6.876 million tons, but the unit price fell 6.1%. Regional market performance diverged significantly. Exports to ASEAN and South Asia grew markedly, with exports to India surging 32.3% year-on-year, while exports to traditional markets in Europe and America declined.
Supply chain efficiency has become a key competitive factor. Due to long delivery cycles, Indian spinning mills have seen their export share to China replaced by Pakistan. In 2025, Pakistan's cotton yarn exports to China exceeded $451 million, showing strong performance.
Industry Outlook
High U.S. tariffs on Indian textiles (reaching 50% in August 2025) have materially impacted trade flows. Concurrently, China's newly revised Foreign Trade Law (effective March 1, 2026) provides the industry with a more flexible institutional framework for trade.
Conclusion
Against the backdrop of rising trade protectionism, the international yarn trade landscape is being reshaped. Companies must focus on product differentiation, supply chain resilience, and market diversification to navigate the increasingly complex global trade environment.
