SunSirs : China Cotton Industrial Inventory Survey Report for January 2026

I. National Cotton Industry Inventory Reaches Approximately 861,000 Metric Tons in Early January

According to a survey conducted by the National Cotton Market Monitoring System across 75 textile enterprises in 14 provinces (municipalities, autonomous regions), As of early January 2026, the average cotton inventory days for surveyed enterprises stood at approximately 39.3 days (including imported cotton arriving at ports), marking a month-on-month increase of 0.6 days and a year-on-year rise of 4.4 days. This represents a 5.6-day increase compared to the five-year average (2019-2024, excluding 2020, same below) for the same period. National cotton industrial inventory is estimated at approximately 861,000 metric tons, up 1.5% month-on-month, 12.5% year-on-year, and 20.1% above the five-year average for the same period. Cotton industrial inventory levels vary across major provinces, with Xinjiang, Hebei, Fujian, and Sichuan provinces exhibiting relatively higher inventory days.

II. Raw Material Procurement Intent Strengthens Month-on-Month; Blending Preferences Differ

The procurement survey indicates that in early January 2026, 57.8% of enterprises planned to purchase cotton, up 10.7 percentage points month-on-month, 11.8 percentage points year-on-year, and 2.2 percentage points above the five-year average for the same period. Those adopting a wait-and-see approach accounted for 41.1%, down 9.2 percentage points month-on-month, up 2.7 percentage points year-on-year, and 4.1 percentage points higher than the five-year average for the same period. Enterprises not planning to purchase cotton accounted for 1%, down 1.5 percentage points month-on-month, down 14.6 percentage points year-on-year, and 6.4 percentage points lower than the five-year average for the same period.

The survey indicates that in early January 2026, 78% of enterprises plan to maintain stable cotton blending ratios, a decrease of 13.6 percentage points month-on-month, 8.5 percentage points year-on-year, and 12.8 percentage points below the five-year average for the same period. 11.4% of enterprises planned to increase their cotton blending ratio, an increase of 8.6 percentage points month-on-month, 9.7 percentage points year-on-year, and 8.1 percentage points above the five-year average for the same period; 10.6% planned to reduce their cotton blending ratio, an increase of 5.0 percentage points month-on-month, a decrease of 1.2 percentage points year-on-year, and 4.7 percentage points above the five-year average for the same period.

III. Stable Cash Flow and Labor Situation

In early January 2026, 69.3% of enterprises reported good cash flow, down 0.3 percentage points month-on-month but up 9.5 percentage points year-on-year, exceeding the five-year average for the same period by 9.4 percentage points. Those with poor capital turnover accounted for 29.8%, up 0.1 percentage points month-on-month, down 4.0 percentage points year-on-year, and 2.2 percentage points below the five-year average for the same period. Those with severe capital shortages accounted for 0.9%, up 0.2 percentage points month-on-month, down 5.5 percentage points year-on-year, and 7.2 percentage points below the five-year average for the same period.

In early January 2026, 77% of enterprises reported normal staffing levels, down 0.9 percentage points month-on-month but up 11.7 percentage points year-on-year, exceeding the five-year average for the same period by 17.5 percentage points. 21.6% of enterprises reported poor staffing conditions, down 0.5 percentage points month-on-month, down 8.8 percentage points year-on-year, and down 11.3 percentage points compared to the five-year average for the same period. 1.4% of enterprises faced severe labor shortages, up 1.4 percentage points month-on-month, down 3.0 percentage points year-on-year, and down 6.2 percentage points compared to the five-year average for the same period.

IV. Enterprise Machine Utilization Rate Rises Month-on-Month

In early January 2026, the machine utilization rate of surveyed enterprises reached 86.9%, up 4.1 percentage points month-on-month and 19.4 percentage points year-on-year. Hunan, Shandong, Xinjiang, Fujian, and Zhejiang recorded average utilization rates exceeding 90%.

V. Yarn and Fabric Production-Sales Ratios Improve Month-on-Month; Product Inventories Decline

In early January 2026, the yarn production-sales ratio of surveyed enterprises reached 100.7%, up 3.0 percentage points month-on-month but down 2.5 percentage points year-on-year, exceeding the five-year average for the same period by 3.1 percentage points. Inventory stood at 22.7 days of sales volume, decreasing by 5.7 days month-on-month, 2.7 days year-on-year, and 3.2 days below the five-year average for the same period. The fabric production-to-sales ratio reached 101.1%, up 1.1 percentage points month-on-month, up 3.6 percentage points year-on-year, and 9.3 percentage points higher than the five-year average for the same period. Inventory stood at 34.5 days of sales volume, down 3.4 days month-on-month, down 4.7 days year-on-year, and 8.9 days lower than the five-year average for the same period.

In summary, national cotton industry inventories saw a slight month-on-month rebound and a year-on-year increase in early January. Recent cotton price recovery boosted enterprises' procurement intentions while slightly dampening their blending preferences. Corporate cash flow and labor conditions remained relatively stable. Both month-on-month and year-on-year operating rates rose, with the latter showing a notable increase. Production and sales rates for yarn and fabric simultaneously climbed month-on-month, indicating sustained improvement in production-end activity across the industry.

As an integrated internet platform providing benchmark prices, on January 16, the SunSirs benchmark price for raw cotton was 15970.67 RMB/ton, an increase of 2.71% compared to the beginning of the month (15549.17 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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