Driven by the price difference between domestic and international cotton, the import volume of cotton yarn continues to rise, with imported yarn capturing the domestic medium- and low-count market.

Recent cotton yarn import data has been released, showing that the volume of cotton yarn imports in August experienced both month-on-month and year-on-year growth. Overseas cotton yarn continues to flow into the domestic market due to its price advantage, bringing new changes to the textile industry chain. From the supply structure and product characteristics to the accumulated annual data, the rising popularity of imported yarn is the result of the combined effect of the cost differences between domestic and foreign cotton and the replenishment behavior of downstream weaving enterprises. It also reflects that the structural competition within the domestic cotton yarn market is intensifying.

Market Drivers and Growth

The volume of cotton yarn arrivals in August rose significantly, achieving both month-on-month and year-on-year increases. The key driver of this import growth comes from the domestic and foreign cotton price gap. The widening price difference of cotton raw materials between domestic and foreign markets highlights the cost-effectiveness of overseas cotton yarn. Compared with domestically produced yarn, cotton yarn produced by overseas mills has a cost advantage, attracting domestic weaving enterprises to increase their purchases. Meanwhile, the replenishment demand from the downstream weaving sector has been released in a concentrated manner, and enterprises’ willingness to stock up has recovered, further boosting the scale of cotton yarn arrivals in August.

Core Import Sources

From the perspective of the distribution of imported sources, Vietnam, India, Uzbekistan, and Pakistan remain the four core countries for China’s cotton yarn imports. These countries have mature textile industries and sufficient yarn production capacity, with overseas yarn mills maintaining a high level of supply to the Chinese market over the long term. Relying on advantages in raw materials and labor costs, these countries continue to supply cotton yarn to China, consistently occupying a major share of the country’s cotton yarn import market. The yarn products from different countries also have distinct focuses, catering to the diversified order demands of domestic weaving enterprises and supporting the stable supply of imported yarn.

Long-term Import Trends

Looking at a long-term perspective, from January to August this year, the total cotton yarn import volume increased significantly compared to the same period last year. There are two key reasons behind this growth. First, the base of cotton yarn imports in the same period last year was relatively low, which amplified the year-on-year growth this year; second, the continuous divergence in domestic and international raw material costs, along with the price differences in cotton, prompted many domestic weaving enterprises to adjust their procurement structure and increase the intensity of overseas yarn purchases.

Competitive Landscape

It is worth noting that the current import of cotton yarn is highly concentrated, primarily in medium-to-low count pure cotton yarn. This type of yarn is mostly used for products such as home textiles and ordinary garment fabrics, which directly competes with domestically produced medium-to-low count cotton yarn. In the medium-to-low count segment, imported yarn attracts orders due to its price advantage, creating considerable pressure on domestic small and medium-sized yarn enterprises; whereas in the high-count, high-quality cotton yarn sector, domestic yarn still maintains strong competitiveness, resulting in a clear differentiation in the domestic and international yarn markets.

Annual Performance Summary

Looking at the entire 2025/26 cotton year, the total import of cotton yarn reached 1.98 million tons, representing a substantial year-on-year increase of 40.4%. This impressive figure indicates that in the previous cotton year, the domestic textile market continued to release its demand for overseas yarn. Textile enterprises, considering cost factors, have continuously increased imports of yarn, making imported yarn an indispensable component of the domestic yarn supply system.