Egyptian Cotton Retains Global Leadership at Premium Prices

Egyptian cotton, long hailed as the “white gold” of the textile industry, has once again demonstrated its global dominance. 

According to the latest issue of Cotlook, the world’s leading authority on long-staple cotton, Giza 94 Egyptian cotton is trading at 175 cents per pound, surpassing U.S. Pima cotton, which stands at 172 cents per pound in East Asian markets.

While Pima shipments are available until the end of the year, Giza 94 contracts are being fulfilled through September, a factor that underscores both the strength and the tight supply of Egyptian cotton.

Analysts note that Egyptian cotton’s premium over Pima is significant, but caution that sustaining such high prices may be difficult. In the week ending August 14, net additions to Pima sales reached 1,000 bales, with shipments totaling 4,600 bales (one U.S. bale equals 480 pounds).

Meanwhile, Egypt’s auction-based trading system continues to shape market flows. Since the season began in mid-October, 36 companies have procured 827,600 kantars of cotton through public auctions. The export season traditionally runs from September through August.

Under government policy, auction opening bids must match either the guaranteed price or the prevailing international price, whichever is higher. This year, the state set the guaranteed price at 10,000 EGP per qintar in Upper Egypt and 12,000 EGP in Lower Egypt, before later reducing it by 2,000 EGP to encourage private-sector participation.

According to the Cotton Exporters Association, shipments so far have generated $124 million in revenue, with export volumes exceeding 37,000 tons of Egyptian cotton. Demand in Asia remains robust, particularly given the fiber’s globally recognized quality.

By outpacing U.S. Pima, traditionally Egypt’s fiercest competitor in premium cotton, Egyptian cotton has cemented its position at the top of global price indices. Experts suggest that as long as demand for luxury textiles remains strong, Egyptian cotton will continue to command premium valuations in international markets.