Imported cotton prices posted a modest uptick in mid-July. According to publicly available customs and industry data, quotes at Chinese main ports rose on July 13, with the international cotton price index (SM) reaching 91.81 cents per pound, up 0.89 cents from the previous day; the (M) index settled at 89.89 cents per pound, up 0.90 cents. Under a 1% tariff, the corresponding port-delivery prices for general trade were approximately 15,374 yuan per ton and 15,056 yuan per ton, respectively.
Cost Pass-Through and Procurement Timing
Although the adjustment was modest, its signal value is worth noting. With the exchange rate broadly stable, the delivered cost of imported cotton at roughly 15,000 yuan per ton is now close to or even above some domestic spot prices, meaning mills relying on imports will see their raw-material margins squeezed further.
For spinning mills, this volatility directly impacts immediate procurement decisions. The industry is currently in a seasonal transition between low and peak demand—downstream orders have not yet fully materialized, but grey fabric and finished fabric inventory buildup is slowly picking up. If imported cotton prices continue to rise, yarn ex-factory prices may be forced upward, transmitting cost pressure to the weaving segment.
From a regional industry-cluster perspective, key cotton processing and spinning hubs in Shandong, Jiangsu, and Henan have seen a notable uptick in inquiry activity. Some mills are accelerating port pickups to lock in relatively low costs, while others are adopting a wait-and-see approach until the international market picture becomes clearer.
Global Supply-Demand Logic
This price increase is not an isolated event. Looking at the global cotton supply-demand landscape, uncertainty persists over planted acreage and weather conditions in major producing countries such as the United States, India, and Brazil. Meanwhile, international shipping logistics have not fully recovered, prompting traders to adopt a cautious stance on forward contract pricing.
Notably, as the world's largest cotton consumer, China's pricing power over imported cotton remains constrained by ICE futures movements and origin-based premiums/discounts. The synchronized rise of both the SM and M indices suggests a simultaneous tightening of supply for medium- to high-grade cotton, which has a more direct impact on order-driven mills that prioritize yarn quality.