The Russian Business Consulting Network recently reported that according to the “Russian Yarn Market Analysis” data, the supply of yarn in the Russian market has dropped by 5.6% in the past five years. The basic factor behind the decline in product supply is reduced demand. From 2008 to 2012, Russian yarn demand fell by 6.6%. The reason for the decline in demand is the reduced demand for yarn from Russian light industry sectors, such as clothing, shoes and hats, knitwear and Russian furniture companies. In addition, reduced government orders also had an impact on lower demand.
From 2008 to 2012, Russian yarn production dropped by 8.5%, while yarn imports increased by 25.5%. Russian yarn imports mainly come from China and Turkey. From 2008 to 2012, yarn imports from China accounted for an average of 60.6% of Russia’s total imports, while imports from Turkey accounted for an average of 10.3%.
Analysts predict that Russian yarn imports will increase year by year from 2013 to 2017. Russia’s accession to the WTO will promote an increase in yarn imports. Before Russia’s accession to the WTO, the import tariff on synthetic yarns and man-made yarns was 10%. By 2015, or 2016 at the latest, yarn tariffs will be eliminated.
