Cotton yarn and cotton futures posted modest gains in the night session, while staple fiber and bottle-grade chips remained under pressure. Data from the June 26 night session reveals not a broad recovery but an intensifying divergence among raw materials.
Event Background
At the 23:00 close on June 26, major domestic futures contracts showed mixed performance. Cotton yarn 2609 settled at 22,210 points, up 0.52%; cotton 2609 closed at 15,730 points, up 0.32%. In the polyester chain, PTA 2609 edged up 0.04% to 5,468 points, but staple fiber 2608 fell 0.14% to 6,936 points, and bottle-grade chips 2609 dropped 0.21% to 6,620 points.
These figures come from public trading records of China's futures market, reflecting sentiment in the last full trading week of June. While the gains in cotton and yarn are modest in absolute terms, they draw attention after a month-long downtrend.
Industry Impact
The rebound in cotton-related contracts appears more technical than fundamental. Cotton had fallen about 5% from the 16,500-point level in mid-May to near 15,700 points, prompting short-covering. Yarn followed but with weaker gains, indicating limited pass-through ability from spinners.
Weakness in the polyester chain is more concerning. Staple fiber fell to 6,936 points, approaching its year-low range. Bottle-grade chips also declined, reflecting sluggish demand from downstream beverage packaging and textile end-users. PTA's negligible gain suggests eroding upstream cost support.
What does this divergence mean for the industry?
- Cotton mills can enjoy short-term inventory appreciation but must guard against price pressure from grey fabric and dyeing sectors.
- Polyester mills face dual pressure from raw material depreciation and slow finished goods sales; output cuts in Q3 become more likely.
- For export orders, cotton product quotes may edge up with futures, but polyester-based items like polyester fabric will lose price competitiveness.