According to data from the National Bureau of Statistics, from January to December 2025, the operating revenue of large-scale cotton textile enterprises in China decreased by 6.1% year-on-year, marking a cumulative decline for eight consecutive months. The decline widened by 2.2 percentage points compared to the previous month's cumulative figure. Specifically, the declines in cotton spinning and cotton weaving were 6.4% and 5.6%, respectively. The decline in cotton spinning widened by 3.2 percentage points compared to the previous month's cumulative figure, while the decline in cotton weaving widened by 0.2 percentage points.

PriceSeek's analysis of cotton yarn indicates a bearish sentiment with a score of -1.5. The article highlights that the operating revenue of cotton spinning in 2025 decreased by 6.4% year-on-year, with the decline widening by 3.2 percentage points compared to the previous month and marking a cumulative decline for eight consecutive months. This suggests persistently weak demand for cotton yarn, which may lead to oversupply in the spot market and downward pressure on prices.

Combined with cotton yarn futures data, such as the Zhengzhou Commodity Exchange contract 2603 settlement price of 20,595 yuan per ton, with a change of -145.00, a trading volume of 12,530 lots, and a decrease in open interest, the market is showing a downward trend. Deteriorating demand may further drag down futures prices, particularly for major contracts like 2605, which settled at 20,745 yuan per ton with a change of -75.00 and minimal changes in open interest, reflecting insufficient investor confidence.

Overall, the score of -1.5 indicates a significant bearish outlook, driven by the widening decline in demand and futures data confirming downside risks.