On November 25, the average price of imported cotton arriving at Chinese ports was 72.01 cents/lb, up 0.14 cents/lb from the 24th. This translates to an import cost of 12,408 RMB/ton (excluding port charges) after applying a 1% tariff, and 13,538 RMB/ton after applying the sliding-scale import tax (excluding port charges). The domestic average price for 3128 cotton was 14,791 RMB/ton, up 24 RMB/ton from the 24th. The Shandong factory-delivered price for Xinjiang 3128B-grade cotton was 14,883 RMB/ton, up 23 RMB/ton from the 24th.

Feedback from cotton spinning mills in Shandong, Jiangsu, Zhejiang, and Anhui indicates that influenced by the late-November rebound in Zhengzhou cotton futures and the 500-point increase in CY2601 cotton yarn futures, coupled with recent improvements in spinning margins, cotton yarn ex-factory quotations have not only stabilized overall but some manufacturers have also reduced discounts on actual orders.

Considering factors such as accelerated payment collection and capital recovery by spinning enterprises in December, lackluster new orders at the terminal end of the cotton textile and apparel industry, sustained rapid growth in new cotton supply for the 2025/26 season, and rising inventory pressure for Xinjiang cotton limiting the rebound potential of Zhengzhou cotton futures, industry insiders believe spot cotton yarn lacks the conditions for a sustained rebound.

Surveys indicate that Xinjiang's large-scale cotton mills continue to see robust order intake and production scheduling for C40S cotton yarn. Sales and production of medium-to-high count air-jet yarns remain largely smooth (particularly OE26S and OE32S). Additionally, feedback from two spinning mills in Aksu and Changji indicates that demand for high-count pure cotton yarns (including combed yarns) of C60S and above from weaving mills and intermediaries in coastal regions like Jiangsu, Zhejiang, and Guangdong has rebounded compared to September and October. Consequently, overall operating rates at Xinjiang cotton mills remained at 80-90% during mid-to-late November, with cotton consumption demand showing no decline despite the arrival of the off-season.

While a significant portion of cotton spinning mills in mainland China saw moderate profits from strong sales of low-to-medium count yarns, medium-count yarn production and sales not only remained in a loss-making state but also faced increasing pressure from the “price and volume” impact of large Xinjiang mills. Recently, a few small and medium-sized cotton spinning mills in Hebei, Shandong, and Henan have planned to suspend operations or reduce production to mitigate risks associated with accumulated finished yarn inventory and tightening cash flow.

As an integrated internet platform providing benchmark prices, on November 26, the benchmark price of cotton lint from Business Society was 14,828.83 RMB/ton, a decrease of 0.2% compared with the beginning of the month (14,858.50 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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