Feedback from cotton spinning enterprises in Xinjiang, Shandong, Jiangsu, and Zhejiang indicates that despite Zhengzhou cotton futures fluctuating downward since late January and coastal weaving mills reducing operating rates, ex-factory prices for cotton yarn and quotations across light textile markets have mostly remained stable. Enterprises show little willingness to proactively lower yarn prices. Anticipating the traditional peak season (“Golden March and Silver April”) for the cotton textile industry, coupled with improving Sino-US and Sino-EU trade relations and concerns over tight domestic cotton supply in the 2025/26 season, many textile mills and intermediaries are considering restocking during Zhengzhou cotton's current pullback (with increasing interest in purchasing warehouse receipts).

Cotton mills in Xinjiang's Shihezi, Changji, Aksu, and Korla regions maintain operating rates between 85% and 90%. Order processing, scheduling, and deliveries proceed smoothly. Most enterprises implemented rotational leave and hired temporary workers to manage the Spring Festival holiday. Some large mills have C32 and C40 high-spec combed yarn orders are even scheduled through late March. Prices for air-jet spinning and medium-to-high count ring spinning remain unchanged ahead of the holiday.

In inland regions like Henan, Shandong, Jiangsu, and Hubei, operating rates at large-scale cotton mills have seen a slight decline over the past fortnight, though not significantly. These mills plan to increase finished yarn inventory accumulation. Smaller inland cotton enterprises, however, face greater pressure from slowing yarn sales ahead of the holiday and higher raw material costs, resulting in insufficient immediate spinning profits and rising operational burdens. Consequently, they have reduced operating rates more substantially. Overall, inland mills are primarily focused on fulfilling existing contracts, expediting pre-holiday shipments, and accelerating payment collection, with new orders declining significantly. Fabric mills in Shaoxing, Xiaoshan, Xiangshan, and Lanxi, Zhejiang, report a continuous decrease in supplies of low-priced, medium-to-low-grade combed yarn and air-jet yarn over the past fortnight.

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