Recently, the No. 1 production workshop of the Wensu Xintou Million-Spindle Cotton Spinning Project in the Aksu region officially entered the trial operation phase, successfully producing its first batch of yarn. The project, which commenced on August 15, 2025, involves a total investment of 3.5 billion yuan and is positioned to produce 32-60 count combed compact-spun pure cotton yarn. It is the second project to commence production among the six large-scale cotton spinning projects (with a total planned capacity of 4.3 million spindles) deployed across Xinjiang by Xintou Group, an investment company with state-owned background in Xinjiang.
PriceSeek Analysis on Cotton Yarn, Bull-Bear Score: -1.5
The article reports the official commencement of production at the Wensu Xintou Cotton Spinning Project, which is positioned to produce 32-60 count combed compact-spun pure cotton yarn with a total investment of 3.5 billion yuan. As the second project under Xintou Group’s 4.3 million-spindle plan in Xinjiang, it significantly increases the supply in the cotton yarn market. The increase in supply may exert downward pressure on spot prices due to rising risks of oversupply.
Combined with data from the cotton yarn futures market, the settlement price of the main contract 2603 (Zhengzhou Commodity Exchange) was 20,810 yuan per ton, down 115 yuan, with a trading volume of 9,754 lots and an open interest of 16,816 lots, a decrease of 227 lots. This indicates that the market is sensitive to expectations of increased supply. This event may reinforce the downward trend in futures prices, with bearish factors being strong but not extreme or significant.
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