On February 3, the quoted prices at China's main ports experienced a slight decline. The international cotton price index (SM) stood at 73.24 cents per pound, down by 0.51 cents per pound, which translates to a general trade port delivery price of 12,645 yuan per ton (calculated based on a 1% tariff and the exchange rate according to the Bank of China's middle price, the same applies below). The international cotton price index (M) was 71.46 cents per pound, down by 0.49 cents per pound, translating to a general trade port delivery price of 12,343 yuan per ton.

PriceSeek analysis of ginned cotton, bullish-bearish score: -1
The international cotton price indices (SM and M) fell by 0.51 cents per pound and 0.49 cents per pound, respectively, with the equivalent RMB spot prices dropping to 12,645 yuan per ton and 12,343 yuan per ton. This indicates an oversupply or weak demand in the spot market, exerting a generally bearish influence on ginned cotton prices. The price decline may stem from increased global cotton production or weakened trade flows. It is advisable to monitor subsequent supply and demand changes.

Cotton yarn, bullish-bearish score: -1
As a downstream product of ginned cotton, the decline in raw cotton costs may be transmitted to the cotton yarn production side, reducing support for spot prices. The international cotton index fell by approximately 0.5 cents per pound, reflecting pressure in the raw material market and exerting downward pressure on cotton yarn spot prices, which is generally bearish. The actual impact should be assessed in conjunction with terminal textile demand, but current data point to a cost-driven decline.