China's domestic cotton prices rise further as mill demand strengthens

Converted to Indian terms, the current price aligns near ₹67,138 per candy of 356 kg- equivalent (28 mm/31 grade), keeping Chinese cotton at a competitive yet rising level against Indian spot rates.

Across the national weighted average, all benchmark grades recorded firm gains, with higher quality lots posting the strongest increases. The 1129B grade averaged 15,380 yuan per ton, up by 42 yuan, followed by 2129B at 15,186 yuan, up 44 yuan. The CC-indexed 3128B grade rose 40 yuan to 14,936 yuan, while the 4128B and 1228B grades registered similar gains of 36–40 yuan. Lower grade 2227B also strengthened to 13,060 yuan, climbing 43 yuan compared with the previous day, reflecting broad-based firmness across the value chain. Mills reportedly preferred better fibre maturity and length categories, indicating a quality-led rally rather than speculative buying.

Regionally, East China maintained the highest price levels driven by robust spinning operating rates. Zhejiang reported the country’s highest 3128B quotation at 15,122 yuan, followed by Jiangsu and Anhui, both exceeding 15,040 yuan. Shandong remained firm with 3128B around 14,982 yuan, and select 1129B lots quoted close to 15,500 yuan, indicating premium market conditions.

Central China markets held steady with healthy mill activity. Henan led with 3128B at 14,950 yuan, supported by steady procurement from integrated spinners. Hubei and Hunan remained close to 14,915–14,923 yuan, while Jiangxi posted stronger sentiment at 15,014 yuan, reflecting selective yet consistent purchases.

South and Southwest China maintained gradual upward movement. Guangdong recorded 3128B near 14,902 yuan, supported by steady consumption from coastal mills. Sichuan and Chongqing both showed firm sentiment, with quotations around 14,950–15,012 yuan.

Xinjiang—China’s largest cotton-producing region—continued to command competitive pricing relative to eastern consuming hubs. The 3128B grade was assessed around 14,763 yuan, while premium 1129B lots hovered near 15,100 yuan. Price resilience in Xinjiang suggests stable procurement from mill clusters gearing up for year-end production cycles.

The continued firming in Chinese domestic cotton comes at a time when global markets are watching consumption signals with caution. For Asian spinning hubs including India, Pakistan, Bangladesh and Vietnam, the latest trend underscores improving mill sentiment inside China and may impact regional yarn pricing parity in the coming weeks. If sustained, the gradual upward movement in domestic Chinese cotton may translate into firmer global trade tone, particularly for medium- and higher-grade fibre categories.

ALCHEMPro News Desk (KUL)