Costs are rising, yet selling prices are falling. That is the most honest description of Keqiao Light Textile City in September 2026. Industry public data shows the textile price index stood at 106.68 points, down 0.25% month-on-month, while the raw material sub-index climbed to 94.40 points, up 0.18%. Between these two directions, the margin of the midstream has been squeezed paper-thin.
A Divergent Raw Material Landscape
The polyester chain is the main driver of this upward move. PTA and ethylene glycol prices rose in tandem, directly lifting polyester yarn quotes. Spot deals have largely shifted to case-by-case negotiation, and quote validity periods have shortened noticeably. This means spinning mills are reluctant to lock in long orders, and weaving enterprises face declining certainty in sourcing.
Cotton yarn follows a different logic. 32S carded yarn holds near 25,100 yuan per ton, with high cotton prices providing rigid cost support. Yet downstream purchasing remains cautious, and large-scale stockpiling has all but disappeared. The traditional buy-on-rise pattern has failed in the face of funding pressure.
Viscose yarn remains weak, with a wait-and-see atmosphere. Three major yarn categories moving at three different rhythms indicates this round of cost pass-through is not a broad resonance but a structural squeeze. The closer a segment is to end consumption, the harder it is to pass on price increases.
Hot and Cold Fault Lines in Fabrics
Grey fabric prices and volumes retreated month-on-month, and the divergence within apparel fabrics continues to widen. Wool blends and differentiated chemical fiber fabrics are seeing better inquiries and shipments. Pure cotton and ordinary polyester-cotton fabrics remain sluggish. Homogeneous grey fabrics are trapped in a low-price race to the bottom, with margins almost negligible.
Autumn-winter consumption is driving demand for thick blends, small-texture fabrics, and lightweight functional materials. Domestic womenswear brands and e-commerce clients predominantly use small-batch, quick-response models. The share of large orders is shrinking. Most clients place trial small orders first, then reorder after positive market feedback. For factories, this means production planning must shift from large-volume, long-cycle to multi-batch, short lead times.
The home textile segment is stable, with export orders showing some recovery. However, overseas buyers are highly sensitive to raw material volatility and strict on pricing. Fabrics with unique textures and special blend ratios command stronger bargaining power, becoming a key tool for merchants to hedge cost risks.
A Collective Strategic Pivot
Facing frequent raw material fluctuations and order fragmentation, Keqiao textile firms are moving away from the old model of simply pushing grey fabric volume. On the raw material side, batch-based price locking has become standard practice to avoid inventory risks from sharp price swings. Companies are also strengthening coordination with upstream spinning mills, prioritizing differentiated blended yarns to solidify product competitiveness from the source.
On the product side, R&D is being front-loaded. Stores now display yarn samples alongside finished garment samples, delivering complete fabric solutions to clients. Companies are accelerating new product iteration, compressing sampling cycles to match brand clients' small-batch quick-response needs. They are also balancing traditional export channels with cross-border e-commerce to diversify market risks.
The key variables ahead remain raw material prices and end-consumer demand. If chemical fiber prices stay high, cost pressure on fabric enterprises will persist. Only sustained autumn-winter consumption and brand reorders can further open up growth space. The industry is likely to continue a structural market, with survival pressure intensifying for commodity categories, while companies with differentiated products and rapid response capabilities will see their advantages grow.