In June 2026, China's cotton imports reached 110,000 tons, a threefold year-on-year increase but a 2.7% month-on-month decline. Behind this data lies a more significant structural shift: Brazilian cotton's import share plummeted 18 percentage points to 40%, while Australian cotton's share soared 98 percentage points to 28%.
Drivers of the Import Surge
The sharp year-on-year increase in June imports was driven by two core factors. First, the domestic-foreign cotton price gap remained high at around 3,000 RMB/ton, making imported cotton significantly more cost-effective than domestic cotton. Second, the base period was extremely low — in June 2025, due to tariff increases, imports were only 27,000 tons, a 20-year low. This low-base effect amplified the year-on-year growth. The month-on-month decline reflects the traditional off-season in the domestic textile market, with mills slowing their purchasing pace.
On a half-year basis, China imported 935,000 tons of cotton in the first half of 2026, up 100% year-on-year. In the first 10 months of the 2025/26 season, cumulative imports reached 1.415 million tons, up 52.6% year-on-year. These figures indicate that despite monthly fluctuations, overall import demand remains strong.
Structural Shift: Brazilian Cotton Loses Ground, Australian Cotton Rises
The ranking of import sources saw a clear reshuffle in June. Brazilian cotton, though still the top source at 44,100 tons, dropped 32.2% month-on-month, with its share falling from 58% in May to 40%. The main reason was price increases: the average CIF price of Brazilian cotton was $1,669/ton, up 3.3% month-on-month, significantly weakening its cost advantage.
In stark contrast, Australian cotton experienced explosive growth. June imports reached 30,600 tons, surging 22-fold month-on-month, with its share jumping from about 1.4% in May to 28%. Australian cotton prices remained stable or slightly lower, averaging $1,927/ton, down 1.1% month-on-month. Against a backdrop of a 6.2% overall increase in import cotton prices, its price stability became a key attraction for buyers.
US cotton imports were 17,900 tons, down 28.1% month-on-month, with a share of 16%. The average price of US cotton was as high as $2,026/ton, up 9.2% month-on-month, the highest increase among all sources, directly linked to drought concerns in major US growing regions.
Trade Modes and Price Trends
In terms of trade modes, goods under customs special supervision areas still led with 43,000 tons, but their share fell 4 percentage points to 39%. General trade imports were 21,000 tons, up 1.4% month-on-month, with its share rising 12 percentage points to 19%. This shift may indicate that some enterprises are using general trade channels to avoid logistics costs in special supervision areas.
The average import price in June was $1,804/ton, up 6.2% month-on-month. Global new-season cotton inventory decline expectations and drought in US cotton regions were the dual drivers. Brazilian and US cotton prices rose 3.3% and 9.2%, respectively, while Australian cotton prices fell slightly by 1.1%, further strengthening its cost-effectiveness appeal.
Downstream Demand and Global Supply
In June, the overseas autumn/winter apparel replenishment cycle began, boosting yarn and grey fabric orders. China's textile and apparel exports grew 14.3% month-on-month to $29.27 billion, with apparel exports at $15.75 billion, up 21% month-on-month. The moderate recovery in external demand provides demand-side support for cotton imports.
However, global supply is changing. The USDA July report shows that global cotton production for 2026/27 will increase by 2.613 million tons, with significant increases in Brazil, the US, and Turkey. Data from the Brazilian Cotton Growers Association confirms this: in the first 11 months of the 2025/26 season, Brazil exported 3.219 million tons of cotton, up 18.9% year-on-year, with China purchasing 767,000 tons, still the largest buyer. This means that despite the decline in Brazilian cotton's share of exports to China in June, its global supply capacity remains strong. If prices adjust downward, its share may recover.