On August 28, 2026, domestic cotton quotes showed a rare narrow trading range across major Chinese markets. Xinjiang 3128B cotton was quoted at 18,144 yuan/ton, while inland markets such as Fujian, Zhejiang, Jiangxi, Shandong, Jiangsu, Henan, Hebei, and Anhui ranged from 18,250 to 18,384 yuan/ton, with the widest regional spread under 240 yuan/ton. This price structure is reshaping the sourcing strategies of textile mills.
The logic behind the narrowing regional spread
Historically, Xinjiang cotton, as the country's largest producing area, has been priced 300 to 500 yuan/ton lower than inland markets to account for transport costs. However, this quote shows the spread has compressed to between 106 and 240 yuan/ton, well below the historical average. This means the cost advantage of Xinjiang cotton upon arrival is weakening, while inland cotton is becoming more competitive. For textile mills relying on Xinjiang cotton, comparing origin quotes alone is no longer sufficient; they must also consider outbound freight subsidies, futures premiums, and actual delivered costs.
From the data, Zhejiang market had the highest quote (18,384 yuan/ton), while Anhui had the lowest (18,286 yuan/ton), a difference of only 98 yuan. This reflects the demand disparity between coastal and inland textile clusters. Zhejiang, as a major producer of home textiles and apparel fabrics, supports higher prices for high-grade cotton; Anhui and Henan, focusing on cost control, show stronger bargaining power. This regional divergence offers arbitrage opportunities for traders.
Transmission effects on the textile chain
The narrow fluctuation of cotton prices directly impacts the cost accounting of downstream yarn and fabric mills. With 3128B cotton stable between 18,100 and 18,400 yuan/ton, the raw material cost for 32-count pure cotton yarn is approximately 22,000 to 23,000 yuan/ton (including processing fees). If market selling prices fall below this range, mills face losses. Therefore, the recent stalemate in cotton yarn quotes is a result of the tug-of-war between cost support and weak demand.
For foreign trade enterprises, RMB exchange rate fluctuations and sea freight changes make the price gap between imported and domestic cotton unpredictable. The near-parity quotes across inland markets suggest that imported cotton does not have a clear competitive advantage, allowing domestic mills to arrange domestic cotton purchases more calmly. However, a warning is warranted: if supply tightens before the new crop arrives, high-quality Xinjiang cotton may be locked in early, potentially driving up inland quotes.