Since late July, overseas cotton yarn prices have generally risen, yet port shipments in China have slowed—this seemingly contradictory data has become the biggest headache for coastal textile traders. The coexistence of price hikes and sluggish sales means cost pressures cannot be passed downstream, and inventory risks are accumulating.
Background
Feedback from Guangdong, Jiangsu, Zhejiang, and Fujian indicates that the overseas price hike is not driven by a single factor. ICE cotton futures have been volatile upward since late July, directly raising yarn production costs; India's CCI auction floor prices have been raised consecutively, further strengthening market expectations. Meanwhile, textile and apparel exports from Bangladesh, Vietnam, and India accelerated both month-on-month and year-on-year in June-July, boosting overseas mills' willingness to hold prices.
As a result, FOB/CNF/CIF quotes for Vietnamese, Indian, Indonesian, Bangladeshi, and Uzbek yarns have generally risen, while Pakistani yarn remained stable due to steady domestic demand, limited export volumes, and lower cotton prices from the 2026/27 crop quality decline. Notably, CIF and bonded quotes for polyester-cotton yarn from Vietnam and Indonesia saw little change, with mills and traders adopting a wait-and-see stance.
Industry Impact
The price hikes have not stimulated transaction activity but have instead aggravated port sluggishness. Surveys show that inquiries and orders for bonded and afloat cotton yarn from coastal weaving, fabric, and garment factories have dropped significantly since late July compared with May and June, due to factors such as 100% transaction rates in central reserve cotton sales, the end of the World Cup, and weak growth in cotton product export orders. Traders in Guangdong, Jiangsu, and Zhejiang report slower shipments and rising inventory and capital pressure.
This supply-demand mismatch affects the entire chain. For traders, higher overseas prices mean higher procurement costs, but downstream reluctance forces them to bear inventory costs passively; for weavers, high yarn prices and insufficient terminal orders make purchasing decisions more cautious, with some turning to cheaper alternatives.
Notably, despite the overall upward trend, a few Vietnamese second- and third-tier brands have lowered air-jet spun yarn quotes, and some Pakistani mills offer relatively low prices for siro spun and 21-32S ring-spun yarns. These low-priced sources have attracted coastal weavers and middlemen to ports and bonded warehouses, becoming a rare bright spot in the market.