In the first half of 2026, China's cotton yarn imports surged over 55% year-on-year, with monthly volumes stabilizing around 170,000 tons. This signals a structural adjustment driven by downstream demand and upstream inventory replenishment.
Import Data Insights
According to China Customs data, June 2026 cotton yarn imports were approximately 170,000 tons, flat month-on-month but up 54.2% year-on-year. First-half cumulative imports reached 1.05 million tons, up 56.3%. The 2025/26 season (September 2025 to June 2026) saw total imports of 1.64 million tons, a 40.2% increase.
These figures reveal a sustained import surge rather than a short-term spike. For buyers, this means overseas supply stability can now be factored into long-term sourcing plans.
Drivers Behind the Import Surge
Two key factors explain the sharp import increase.
First, a persistent price gap between domestic and international cotton prices. In 2025/26, China's Xinjiang cotton price support policy kept domestic costs high, while yarn from India, Pakistan, and Vietnam offered significant price advantages.
Second, recovering downstream orders. China's textile and apparel exports performed better than expected in Q1 2026, driving intermediate demand for cotton yarn.
This sustained import growth has pressured domestic spinners, with some small and medium mills forced to cut operating rates in Q2 2026.
Impact Across the Supply Chain
The import wave affects different players differently.
- Domestic spinners: Profit margins squeezed, especially for regular 32s and 40s combed cotton yarn, facing direct substitution. Domestic yarn prices rose far less than import cost increases in H1 2026.
- Weaving mills: Expanded raw material options. Imported yarn often offers better consistency and delivery reliability. Clusters in Guangdong and Zhejiang increased reliance on imports in 2026.
- Traders: Price spreads created arbitrage opportunities but also inventory risks. Some traders misjudged the market and suffered losses after stockpiling at peak prices.