In June 2026, China imported 110,000 tons of cotton, a 3-fold year-on-year increase but a 2.7% month-on-month decline. This contrast stems from a persistent domestic-foreign price spread of around 3,000 yuan/ton, slower procurement during the off-season, and a low base last year. Average import price rose 6.2% month-on-month to $1,804/ton, reflecting tightening global inventory expectations and weather disruptions in major producing regions.
Import Source Reshuffle: Australian Cotton Surges, Brazilian Retreats
The import source structure underwent a dramatic shift in June. Brazilian cotton, though still the largest at 44,100 tons, plunged 32.2% month-on-month, with its share dropping 18 percentage points to 40%. US cotton imports also fell 28.1% month-on-month to 17,900 tons, accounting for 16%. In stark contrast, Australian cotton arrivals soared to 30,600 tons, a 22-fold month-on-month surge, lifting its share from nearly zero to 28%—a 98-percentage-point jump.
The driving force is price: Brazilian cotton averaged $1,669/ton (up 3.3% month-on-month), US cotton soared 9.2% to $2,026/ton, while Australian cotton edged down 1.1% to $1,927/ton. This shifting cost advantage prompted mills to pivot toward Australian cotton. For downstream fabric and apparel buyers, this means more complex raw material cost dynamics.
Trade Mode and End Demand: General Trade Recovers, Export Signals Clear
Among trade modes, goods under customs special supervision zones remained the largest at 43,000 tons but saw its share edge down. Notably, general trade imports rose 1.4% to 21,000 tons, with its share up 12 percentage points to 19%, suggesting some mills are directly using imported cotton for production rather than as bonded inventory.
End-demand support came from sustained textile and apparel export growth: June exports reached $29.27 billion, up 14.3% month-on-month and 7.2% year-on-year. Garment exports grew 21% month-on-month, and textile exports rose 7.4%, indicating the overseas autumn/winter replenishment cycle has begun. Yarn and grey fabric orders are recovering, but domestic mills remain cautious.
Global Supply Outlook Up, but Risks Remain
The USDA July report shows 2026/27 global cotton output up 2.613 million tons, with Brazil, the US, Turkey, and Central Asia expanding production. Ending stocks-to-use ratio rises to 58.4%. Brazil's cotton growers association data confirms strong exports: 3.219 million tons in the first 11 months of 2025/26, up 18.9% year-on-year. Yet China's purchase from Brazil fell in June—a price-driven shift that may signal diversification of sourcing risk.