June cotton import data reveals a key signal: the domestic textile industry is transitioning from single price-arbitrage-driven to diversified sourcing strategies. Imports reached 110,000 tons, up 3x year-on-year but down 2.7% month-on-month, reflecting both off-season effects and adjusted purchase rhythms.
Average Import Price Rises and Source Country Divergence
The average import price rose 6.2% month-on-month to $1,804/ton, driven by tightening global inventory expectations and drought in U.S. cotton regions. U.S. cotton saw the largest price increase, up 9.2% to $2,026/ton. Brazilian cotton rose 3.3% to $1,669/ton, while Australian cotton prices fell 1.1% to $1,927/ton. This price divergence directly altered the import structure.
Brazilian cotton imports dropped 32.2% month-on-month to 44,100 tons, with its share falling from 58% to 40%. Australian cotton imports surged 22 times to 30,600 tons, with share jumping from 2% to 28%. U.S. cotton share fell 6 points to 16%. This shift indicates buyers are actively seeking better value rather than passively accepting pricing from major suppliers.
Trade Mode and Demand Linkage
General trade imports rose 1.4% month-on-month to 21,000 tons, with share increasing 12 points to 19%, signaling stronger willingness to replenish through regular channels. Special customs supervision zone logistics still dominated but its share fell 4 points to 39%. This structural change coincided with downstream order recovery.
Textile and apparel exports reached $29.27 billion in June, 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%. The external demand restocking cycle, combined with a domestic-foreign cotton price spread of around 3,000 yuan/ton and continued use of sliding-duty quotas, provided dual support for import growth.
Global Supply Adjustments and Domestic Transmission
The USDA July report raised 2026/27 global cotton production by 2.613 million tons, with increases in Brazil, the U.S., and Turkey. However, 2025/26 ending stocks were reduced by 1.96 million tons, with the stocks-to-use ratio falling to 63.1%. ABRAPA data shows Brazil exported 3.219 million tons in the first 11 months of 2025/26, up 18.9%, with China purchasing 767,000 tons (24%).
This means that while global cotton supply is expected to be ample, competition for high-quality fiber remains intense. The rise of Australian cotton exemplifies this logic: when Brazilian and U.S. cotton prices rose, Australian cotton quickly filled the gap with stable quality and relatively low prices.