In the first week of September, the Shengze yarn market showed a mostly flat price list compared to the previous week, yet beneath the calm surface, undercurrents stirred. Specific specifications such as polyester-viscose 40S and pure polyester 45S saw tentative price increases or faster turnover, while pure cotton and polyester-cotton yarns experienced sluggish volumes. This pattern of 'broad stability with local activity' reflects downstream weaving mills shifting from panic stockpiling to order-based procurement, signaling a new rhythm of production driven by sales.
Cost Game Behind Price Stability
Looking at specific quotes, pure cotton yarn 21S and 32S maintained prices at 20,400 RMB/ton and 24,000 RMB/ton in major producing areas like Shandong and Jiangsu, unchanged from September 4. Polyester-cotton T65/C35 series also remained static, but market feedback indicated weak transactions. Notably, polyester-viscose T65/R35 32S in Jiangsu rose by 100 RMB/ton to 14,700 RMB/ton, marking the only conventional specification to increase this week. Viscose yarn 10S and 30S saw decent trading volumes, with prices stable, while viscose staple fiber center price held at 14,450 RMB/ton, though market sentiment hints at a mild upward adjustment for viscose yarn.
On the raw material side, polyester staple fiber (1.56*38 cotton type) center price was reported at 8,300 RMB/ton, having consolidated for several weeks. This means spinners' raw material costs are largely locked, but yarn prices have simultaneously stagnated, squeezing processing margins into a narrow band. For small and medium mills, current processing fees per ton only cover labor and energy costs, leaving little for depreciation. This dual squeeze of costs and selling prices is forcing companies to rethink product mixes—the profit space for conventional commodity yarns is no longer sufficient for sustainable operations.
Structural Highlights: Differentiated Yarns Break Through
Amidst the 'stability', the active trading of pure polyester 45S and polyester-viscose 40S stood out. Pure polyester 45S saw notably better sales than other specs in its series, while polyester-viscose 40S showed considerable momentum. These specifications are typically used for differentiated fabrics like faux silk and peach skin, indicating that downstream weavers are seeking profit growth through product upgrades. In contrast, pure polyester 21S and 32S had lackluster sales, reflecting weak demand for conventional polyester yarns.
This structural divergence is not coincidental. Weaving clusters around Shengze, dominated by air-jet looms, are gradually shifting from low-value plain weaves to high-density, fine-denier, blended and interwoven products. The use of pure cotton 32S in jet-loom luxury crepe fabrics exemplifies this trend—a specification that maintains active sales due to its suitability for new fabric development. For spinners, the ability to capture such niche demand directly determines their operating rates and cash flow during the off-season.
Regional Cluster Linkages and Outlook
Geographically, Shandong, Jiangsu, Anhui, and Zhejiang remain the primary yarn suppliers, with minimal price differences across regions, indicating limited cross-regional arbitrage opportunities. However, order structures vary: Shandong focuses on OE10S and 21S/2 in pure cotton, while Jiangsu has advantages in medium-count yarns like 32S and 40S. This division implies that competition among yarn enterprises has shifted from price wars to quality consistency and delivery reliability.
Looking ahead to mid-to-late September, the strength of the traditional peak season will be a key variable. Current stabilization of polyester and viscose staple fiber prices provides some support for yarn prices; however, if downstream orders fall short, yarn prices may face downward pressure. Whether the mild upward expectation for viscose yarn materializes depends on actual terminal apparel sales. For buyers, now is not the time for blind stockpiling, but rather to closely monitor weaving mill operating rates and greige fabric inventories, seeking opportunities for phased purchasing amidst price fluctuations.