Price trend

Domestic cotton prices fluctuated narrowly last week, with the price difference between domestic and international markets widening, significantly constraining upward price movements. According to SunSirs commodity market analysis system, as of February 9th, the spot price of 3128B grade cotton was 15,986 RMB/ton, a decrease of 0.65% compared to the previous Monday.

Market analysis

The cotton spot market supply remained ample, and downstream trading activity slowed down before the Spring Festival. According to data from the National Cotton Market Monitoring System, as of February 5, 2026, the national cotton processing rate was 98.6%, a year-on-year decrease of 0.4 percentage points; the national sales rate was 65.7%, a year-on-year increase of 22.5 percentage points, and an increase of 27.1 percentage points compared to the average of the past four years. In Xinjiang, the basis price for machine-picked cotton (3129B) with impurities below 2.6% in northern Xinjiang was quoted at a basis of around 1,200-1,270 RMB/ton, while the basis price for the same grade of cotton in southern Xinjiang was slightly lower, around 20-30 RMB/ton.

Internationally, a volatile macroeconomic environment dominated market sentiment. International cotton prices fell for eight consecutive trading days starting January 28th. Last week, the average settlement price of the most active New York cotton futures contract was 62.01 cents per pound, down 1.43 cents per pound from the previous week, a decrease of 2.3%. Domestic cotton prices were 3,812 RMB per ton higher than international cotton prices, with the price difference widening by 259 RMB per ton compared to the previous week. This continued widening of the price gap between domestic and international cotton was beneficial to cotton and cotton yarn imports, which may continue to increase.

Domestic cotton supply was ample, and downstream textile companies were gradually entering holiday mode. Most companies maintaining production were focusing on digesting inventory and fulfilling orders, reducing their willingness to replenish raw material stocks, and the industry's operating rate had declined. As companies gradually close for holidays, short-term demand support is further weakening.

Market outlook

Overall, the domestic cotton market entered a period of quiet before the holiday, with trading activity gradually declining. Cotton prices lack clear direction in the short term, and the market is expected to continue its range-bound trading pattern before the holiday.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.