Every June is the traditional off-season for the textile industry. This year, the cotton market has also been turbulent. For our textile enterprise that produces pure cotton beach towels and pure cotton bathrobes for export, the fluctuations in raw material prices directly affect costs and the pace of order taking. Recently, we have been closely monitoring market changes and finding ways to control costs, ensure quality, and stabilize the supply chain for overseas customers amid the fluctuations. Our company has a Kids Bathrobe Factory that specializes in producing children’s bath products, as well as Poncho Towel Surf Factory and Poncho Beach Towel Factory, which focus on post-washing warm-up clothing for surfing and beach wear respectively. With multiple product lines working simultaneously, we have become more sensitive to the fluctuations in raw material prices and must manage costs more meticulously.
The cotton price rose initially but then fell, and the cost pressure remains.
Recently, the price of cotton has experienced a trend of rising first and then falling. Under the circumstances of weak domestic demand during the off-season and accumulated inventory of yarns, the domestic futures market has been pressured to decline. In the international market, US cotton has also risen and then fallen due to factors such as improved weather conditions in the production areas and the strengthening of the US dollar. The price difference between domestic and foreign cotton remains high, reaching nearly 4,000 yuan per ton at one point. Although it has narrowed recently, the price gap between imported cotton and domestic cotton is still significant. How to use the quotas and how to control the pace directly affect the raw material cost.
For us, every time the cotton price fluctuates, the production costs of pure cotton beach towels, bath towels and bathrobes will also change accordingly. Especially for high-weight beach towels and thick bathrobes, the amount of cotton used is large and the quality requirements are high. The profit margin is already thin, and when the cotton price fluctuates repeatedly along with the internal and external price differences, the quotations and cost accounting require a lot of extra effort.
The cotton price will not rise significantly in the short term, but there is a possibility of a tightening in the long term.
From the perspective of supply and demand, the current cotton market is generally in a relatively loose state. Last season, domestic cotton production was abundant, and the negative impact of the new cotton supply when it hit the market has largely been absorbed. Moreover, it is currently the off-season for textiles, with few downstream orders. In the short term, there is insufficient momentum for the cotton price to surge significantly. However, if we look at the situation over a longer period, the planned planting area of Xinjiang cotton for the next season is expected to decrease by 3.5%. There is an expectation of a tightening in the global supply side. Therefore, the future trend of the cotton price remains uncertain.
The competitive environment is also changing. India has abolished the import tariffs on cotton, reducing the raw material costs for local textile factories. The competitiveness of medium and high-grade cotton yarn has increased, which has exerted certain pressure on our home textile exports. Fortunately, on the other hand, some positive signals have emerged recently in the Sino-US trade relations. The trade environment for categories such as textiles and clothing, as well as cotton yarn, has shown some improvement potential. The import of US cotton remains smooth, which leaves us room to flexibly adjust our procurement structure and reduce the cost of high-end products.
Three directions to deal with market fluctuations
Market fluctuations are the norm. Our approach to dealing with it is quite simple – we focus on strengthening in three key areas.
First, control costs. In terms of procurement, we adopt the strategy of large-scale centralized purchasing and maintain long-term cooperation with major suppliers. We adjust the purchasing pace flexibly according to market changes to minimize the impact of cotton price fluctuations. In the production process, we are also continuously optimizing the process, improving the utilization rate of cotton, reducing losses, and lowering costs. Only in this way can our quotations to customers remain stable.
Second, maintain quality. Costs must be controlled, but the quality cannot be compromised. We have always used Xinjiang long-staple cotton, which has soft fibers, good moisture absorption and breathability. The made beach towels are thick and absorbent without fading, and the bathrobes are fluffy and soft without deforming. They meet the expectations of overseas consumers for natural and comfortable home textiles. The entire production process is self-controlled, from weaving to dyeing and to post-treatment. The products have passed safety certifications for the European and American markets, and customers don’t need to worry about the quality.
Thirdly, provide excellent service. We have been in the foreign trade business for many years and are well-versed in the demand patterns of overseas markets. When customers request custom designs, small batch production with quick delivery, and full-process quality control supervision, we can all cooperate. Whether it’s large-scale orders from supermarkets or custom orders from brands, our response speed and delivery stability are what we have always valued, and these are also the reasons why our long-term cooperation is favored by our existing customers.
Summary
The fluctuation of cotton prices is a common phenomenon in the industry. The external environment is also constantly changing, but the fundamental aspects such as ensuring product quality, controlling costs, and providing excellent customer service will remain unchanged. In the future, we will continue to monitor the changes in the cotton market and foreign trade policies, and make the pure cotton beach towels and bathrobes categories more solid. Together with overseas customers, we will ensure that the business is more stable and long-lasting.
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Post time: Jun-09-2026