Price trend

Since February, cotton prices have fluctuated within a narrow range. According to the commodity price analysis system of SunSirs, as of February 5th, the spot price of 3128B grade lint cotton was 16,031 RMB/ton, a decrease of 1.02% compared to the beginning of the month.

Market Analysis

As the Spring Festival approaching, cotton processing in Xinjiang is also nearing completion.  Starting February 7th, the scheduling and inspection of cotton entering specialized warehouses in Xinjiang will be suspended. According to a survey by the China Cotton Association, the average purchase price of raw cotton for 400-type cotton processing enterprises nationwide in January was 5.99 RMB/kg, a year-on-year increase of 3.3% and a month-on-month increase of 5.5%. As of the end of January, a total of 7.262 million tons of cotton had undergone notarized inspection nationwide, with Xinjiang accounting for 98.7%.

The Central Government's No. 1 Document for 2026 was released on February 3rd. The document, by stabilizing the supply of key raw materials, particularly emphasizing the "improvement of the target price policy for cotton," ensures the security and quality improvement of basic raw material supply for the textile industry from the source, providing a solid foundation for downstream enterprises to develop high-value-added products.

Market outlook

As the Spring Festival approaches, textile companies across the country are gradually entering a period of shutdown and holiday, leading to a significant slowdown in downstream market sales and a noticeable decrease in new orders. Some companies in Xinjiang are maintaining stable production and sales, with relatively abundant overall orders. Large spinning mills in Xinjiang are operating at around 90% capacity. It is expected that cotton prices will maintain a range-bound fluctuation before the holiday.

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