China Cotton Network Special Report: According to feedback from cotton trading enterprises in Qingdao, Zhangjiagang, Nantong and other places, due to the continuous consolidation of the ICE cotton futures main contract (March contract) within the range of 63.55 – 65 cents per pound over the past week and a half (the basis of foreign cotton保税/shipments and other US dollar resources remained stable)， and the CF2601 contract of Zhengzhou cotton recovering the key levels of 13800 and 13900 again (since late November， the January contract has risen by more than 500 points)， therefore， under a 1% tariff (or sliding tariff) condition (or under sliding tariff)， the direct import cost of foreign cotton from abroad and the quotations of Xinjiang cotton from inland warehouses in Henan， Shandong and Jiangsu continued to expand slightly in terms of price alignment， and the competitiveness of foreign cotton further strengthened.
Due to the current shortage of quotas, the growth of cotton product export traceability orders in November-December was lower than expected, and a large portion of the coastal regions had a relatively high enthusiasm for importing cotton yarn for weaving and consumption terminals. As a result, cotton imports have not accelerated. However, industry experts predict that with the gradual release of the 2026 89.4 million tons 1% tariff quota from the end of December to early January, coupled with the favorable impact of mutual tariff reductions between China and the United States that will become apparent in the first half of 2026, as well as the increasing inventory of high-grade and high-standard Brazilian and American cotton in ports, the activity of foreign cotton inquiries and transactions is expected to continuously recover.
According to the quotations from some cotton enterprises, on December 10-11, the net weight quotations for the保税 Brazilian cotton M 1-5/32 (strength 29GPT) at Qingdao Port were mostly around 72-73.62 cents per pound (including the all-inclusive price， with a basis of 8-9.5 cents per pound). The import cost under a 1% tariff was approximately 12，585-12，685 yuan per ton. A small amount of保税 American cotton 31-3/21-2 37/38 (strength 29GPT) had net weight quotations concentrated around 84 cents per pound. Currently， the quoted gross weight for 3129B (breaking strength 29-30CN/TEX) Xinjiang mechanically-harvested cotton in the mainland warehouses is approximately 15，350-15，600 yuan per ton. Considering the differences between net weight and gross weight settlement， the spread between importing Brazilian cotton and Xinjiang cotton in the mainland warehouses under a 1% tariff has widened to 2，900-3，250 yuan per ton.
It is worth noting that, currently, the net weight quotations for Brazilian cotton M 1-5/32 (with a strength of 28-31 GPT and new cotton for the 2024/25 season) that have been cleared at the port are mostly between 17,770 – 17,970 yuan per ton. Based on the current port-bonded Brazilian new cotton quotations, the import cost under a 40% tariff is only 17,500 – 17,800 yuan per ton. Therefore, for some textile factories/traders who do not have a 1% tariff quota, directly clearing Brazilian cotton with a 40% tariff is actually more cost-effective and less risky.
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Post time: Dec-12-2025