In recent years, Indonesia’s textile production capacity has continued to expand. The current spinning scale is about 12 million spindles, and the main varieties are cotton yarn, rayon yarn and blended yarn. About 30% of Indonesian yarn production is exported. Cotton yarn exports are mainly medium and low-count. The main export markets include China, Europe, America, Japan and South Korea.
As can be seen in the figure below, China’s yarn imports from Indonesia have increased significantly since the second half of 2012, with the average monthly import volume rapidly increasing from the previous 1,000-2,000 tons to more than 6,000 tons. In August 2014, the import volume exceeded 10,000 tons. Ton. In 2014, China imported 93,000 tons of Indonesian cotton yarn, a year-on-year increase of 45.8%. At the same time, Indonesia’s share of China’s yarn imports has increased simultaneously. Since 2013, Indonesia’s share of China’s cotton yarn imports has increased from less than 3% to 5-6%.
From the perspective of export regions, China’s share of Indonesian yarn exports has stabilized at around 67% in the past two years. In 2014, the main export markets for Indonesian yarn included China (68%), Japan (15%), South Korea (5%) and Hong Kong, China (4%). From January to April 2015, China imported 35,000 tons of Indonesian cotton yarn, a year-on-year increase of 43%.
As shown in the figure below, the structure of Indonesian yarn imported into China is as follows: 8-25 count carded yarn accounts for 45.7%, 30-47 count carded yarn accounts for 24.7%, 8-25 count combed single yarn accounts for 9%, 25-30 carded yarn accounts for 8.1%.
At present, rising electricity prices, increased chemical fiber production costs, falling cotton prices, and relatively stable cotton yarn prices have prompted Indonesian yarn production to shift from chemical fibers to cotton. In addition, the depreciation of the Indonesian rupiah provided support for Indonesia’s textile and yarn exports. In 2014, Indonesia’s textile exports reached US$12.85 trillion, a year-on-year increase of 0.6%. Cotton cloth exports soared from 29,000 tons in 2013 to 188,000 tons, and the number of exporting countries and regions increased from 10 to more than 20. Japan, Belgium, Italy and the United States are the main markets for Indonesian cotton cloth exports.
