China's cotton yarn imports in the first half of 2026 exceeded 1.05 million tons, a staggering 56.3% year-on-year increase. June alone saw imports stabilize at 170,000 tons, flat month-on-month but surging 54.2% year-on-year. These customs figures reflect a deep interplay between domestic demand recovery and the global cotton yarn supply landscape.
Three Key Drivers of the Import Surge
The first driver is the tangible recovery of downstream demand. Since Q2 2026, orders for apparel and home textiles have shown clear signs of returning, with operating rates for key cotton yarn consumers like denim and knitted fabrics staying above 80%. End-brand replenishment has directly boosted import procurement.
The second factor is the widening price gap between domestic and international cotton. International cotton prices remained relatively low in the 2025/26 marketing year, while domestic prices were more rigid due to planting costs and policy support. This gap gives imported cotton yarn a significant cost advantage, directly competing with domestic spinners.
The third driver comes from the diversification of trade channels. Major suppliers like Vietnam, India, and Pakistan all recorded double-digit export growth to China in 2026, with some optimizing tariff arrangements under trade agreements to further reduce landed costs.
Chain Reactions Across the Industry
For domestic spinners, the import surge means market share erosion. Small and medium-sized mills face dual pressures of order loss and inventory buildup. Some have started to reduce capacity or shift to differentiated products like organic or recycled cotton yarn.
For weaving and garment companies, abundant import supply offers more flexible procurement options. Imported yarns, especially high-count and combed varieties, hold advantages in price and quality consistency. This means downstream enterprises can further optimize raw material costs, but it also raises the bar for domestic yarn in terms of cost performance.
Looking at the entire 2025/26 marketing year (September 2025 to June 2026), cumulative imports reached 1.64 million tons, up 40.2% year-on-year. If this pace continues in the second half, annual imports will set a new record, further strengthening China's position as a buyer in the global cotton yarn trade.
Structural Divergence by Region and Category
The import growth is not evenly distributed. Regionally, coastal provinces like Shandong, Jiangsu, and Zhejiang remain the main consumers, with some weaving clusters relying on imported yarn for over 40% of their needs. Inland areas show weaker import substitution effects due to logistics costs and different downstream product mixes.
By category, carded and open-end yarns are the main import items, driven by demand in denim and knitting. However, high-count combed yarn imports are growing faster, reflecting a consumption upgrade trend where end brands' quality requirements for fabrics are transmitting upstream to yarn.