The average import price of cotton is approaching $1,800 per ton, forcing Chinese textile mills to rethink their sourcing strategies. Customs data for June 2026 reveals a structural shift away from Brazilian cotton toward Australian cotton, driven by diverging price trends and value-for-money considerations.
Import Volume: Triple-Digit Growth Masks Underlying Caution
China imported 110,000 tons of cotton in June 2026, down 2.7% month-on-month but up threefold year-on-year. This stark contrast stems from two factors: a persistent domestic-import price spread of around RMB 3,000 per ton, which keeps imports attractive, and an extremely low base in June 2025, when imports hit a 20-year low of 27,000 tons due to tariff hikes. The month-on-month decline better reflects mills' cautious restocking during the traditional off-season.
In the first half of 2026, total imports reached 935,000 tons, up 100% year-on-year. For the first ten months of the 2025/26 season, imports totaled 1.415 million tons, up 52.6%. This sustained inflow continues to pressure domestic cotton prices.
Sourcing Shift: Australian Cotton Surges, Brazilian Share Plunges
Brazil, Australia, and the U.S. remained the top three suppliers, but their market shares shifted dramatically. Brazilian cotton imports fell 32.2% month-on-month to 44,100 tons, with its share dropping 18 percentage points to 40%. The culprit: Brazilian prices rose to $1,669/ton, eroding its value advantage.
Conversely, Australian cotton imports skyrocketed 22-fold month-on-month to 30,600 tons, capturing 28% of the market—up from near zero. Australian cotton averaged $1,927/ton, down 1.1% month-on-month, making it the only major origin with a price decline. U.S. cotton imports fell 28.1% to 17,900 tons, with a 16% share, as its $2,026/ton price deterred buyers.
For procurement teams, this signals a clear trend: when import prices rise, value-for-money becomes the dominant criterion. Australian cotton is rapidly filling the gap left by Brazilian cotton.
Trade Modes and Average Prices: General Trade Gains, U.S. and Brazilian Prices Lead Increases
Special customs supervision zone logistics remained the largest trade mode at 43,000 tons, but its share fell 4 percentage points to 39%. General trade imports rose 1.4% to 21,000 tons, with its share up 12 points to 19%, indicating more cotton is entering domestic circulation directly.
The average import price rose to $1,804/ton, up 6.2% month-on-month, driven by expectations of a tighter global balance and drought in U.S. cotton regions. U.S. cotton saw the largest increase at 9.2%, followed by Brazilian cotton at 3.3%. Only Australian cotton posted a decline.
Downstream Demand: Export Recovery Supports Cotton Imports
In June, China's textile and apparel exports reached $29.27 billion, up 14.3% month-on-month and 7.2% year-on-year. Apparel exports rose 21% month-on-month, and textile exports rose 7.4%. The start of the overseas autumn/winter garment stocking season boosted yarn and fabric orders, sustaining import demand despite a slower mill procurement pace.
On the supply side, the USDA July report raised 2026/27 global production by 2.613 million tons, with increases in Brazil, the U.S., Turkey, and Central Asia. Ending stocks rose, pushing the stocks-to-use ratio to 58.4%. Data from ABRAPA showed Brazil's cotton exports for the first 11 months of 2025/26 reached 3.219 million tons, up 18.9%, with China remaining the top buyer at 767,000 tons. This suggests Brazil's global supply capacity remains strong, and future exports to China will depend on price competitiveness.