High Import Volume of Cotton Yarn: What the 54% YoY Surge Signals for the Textile Chain

In the first half of 2026, China's cotton yarn imports surged over 56% year-on-year, reshaping market expectations. According to public customs data, June imports stood at approximately 170,000 tons, flat month-on-month but up 54.2% compared to the same period last year. Behind these numbers lie robust downstream demand from weaving mills and intensified competition for domestic spinners.

Import Volume and Pace Cumulative imports for January-June 2026 reached about 1.05 million tons, up 56.3% year-on-year. For the 2025/26 season (September 2025 to June 2026), total imports hit roughly 1.64 million tons, a 40.2% increase. Monthly volumes stabilizing near 170,000 tons suggest that import channels have become a normalized, large-scale supply source rather than sporadic restocking.

Regional Mill Responses Sustained high imports directly pressure domestic cotton yarn hubs in Shandong, Henan, and Jiangsu. Small and medium-sized spinning mills report lower operating rates. Imported yarn, primarily from Vietnam, India, and Pakistan, offers a price advantage of CNY 500-800 per ton for popular counts like Ne 32 and Ne 40, with consistent quality and reliable lead times. Weaving mills in Shengze and Keqiao increasingly shift procurement toward imports, squeezing domestic spinners' margins.

Cost and Price Transmission The influx of imported yarn has not dragged down grey fabric prices. Downstream weaving capacity utilization remains above 80%, indicating strong demand absorption. However, upstream spinning margins are squeezed. Domestic cotton (grade 3128) averaged 10-12% higher than imported cotton in H1 2026, data from the China Cotton Association shows. Spinners face a choice: accept lower margins or shift to higher-count, differentiated yarns.

Impact on Buyers and Exporters For downstream buyers, more yarn options and better bargaining power are clear positives, especially for standard counts. Export-oriented garment makers serving European and US brands, however, must verify origin documentation and traceability—some brands restrict non-domestic yarns for compliance reasons.

Practical Recommendations ### For Procurement Teams - Monitor price spreads between domestic and imported yarn; increase imported yarn inventory when spreads widen. - Build a multi-origin supplier list to mitigate logistics or policy risks. - Conduct in-house quality checks on imported yarn batches, focusing on evenness and strength.

For Spinning Mills - Accelerate shift to differentiated products to avoid direct price competition on standard counts. - Explore long-term quality guarantee agreements with downstream mills to trade reliability for premium pricing. - Monitor cotton import quota policy changes and consider using imported cotton to lower spinning costs.