Shengze yarn market this week showed a pattern of broad stability with selective adjustments. Price data from September 4 to 6 indicated that most yarn specifications remained unchanged, except for polyester-viscose 32S which rose 100 yuan/ton to 14,700 yuan/ton, pointing to a structural demand improvement. Meanwhile, viscose spun yarn 10S and 30S traded relatively actively, with staple fiber prices steady and market expectations turning mildly bullish. This uneven activity underscores the current tug-of-war between upstream costs and downstream demand.
Market Background
As a major yarn distribution hub, Shengze's quotations often serve as a barometer for the industry. This week's data showed that carded cotton yarn 21S and 32S maintained steady sales, with 32S primarily used for jet-loom luxury fabric, indicating rigid demand for medium-count yarns from downstream fabric orders. However, overall cotton yarn prices remained flat for consecutive days, suggesting limited cost pass-through from cotton and constrained room for spinners to raise prices. Polyester-cotton yarn prices were stable but trading was light, reflecting cautious purchasing by weavers who preferred hand-to-mouth buying over stockpiling.
Polyester staple fiber prices held steady, with the 1.56*38mm cotton-type center price around 8,300 yuan/ton. Pure polyester yarn sales were generally sluggish, but the 45S count outperformed others, possibly linked to rising demand for fine-denier yarns in autumn/winter fabrics. For polyester-viscose yarn, selected specifications saw upward adjustments, with 40S transacting relatively well, indicating a substitution advantage in certain casual fabrics.
Industry Implications
The 100 yuan/ton increase in polyester-viscose 32S, though modest, sends a positive signal. Typically, such adjustments correlate with viscose staple fiber costs, but with that feedstock steady, the rise appears demand-driven. For buyers, if polyester-viscose orders continue to improve, further price increases are possible, so monitoring active specs like 40S and timing inventory replenishment is advisable.
Viscose spun yarn 10S and 30S saw active trading while other counts lagged, suggesting downstream home-textile or knitting mills are placing concentrated orders for specific counts. The viscose staple center price around 14,450 yuan/ton has changed little, yet market expectations lean toward a mild uptick in viscose yarn. This stems from low mill inventories and firm pricing intentions upstream, coupled with gradually recovering demand for regenerated cellulose fiber fabrics from apparel brands. However, if raw material costs escalate faster than end-product acceptance, spinners' margins could remain squeezed.
For weaving mills, stable raw material costs are favorable for locking in processing margins. But light trading in pure polyester and polyester-cotton yarns suggests insufficient orders for conventional specs, requiring more flexible production scheduling. Notably, pure polyester 45S sales outperformed others, possibly due to increased use of fine-denier polyester in linings and sportswear, so mills may consider stocking this specification appropriately.