Hutang Yarn Market Weekly: Pure Polyester Yarn Leads Decline, Cotton and T/C Yarns Stagnant

Pure polyester yarn 32S fell by 300 yuan/ton in a single week, while cotton and T/C yarn prices remained completely unchanged—this is the latest signal from the Hutang yarn market on June 28, 2026. In the traditional off-season combined with unclear macro expectations, divergence among yarn categories is intensifying, with different product groups following distinct pricing paths.

Price Divergence: Polyester Yarn Leads Decline, Cotton Stalls

From June 24 to 28, all specifications of pure polyester yarn in the Hutang market declined. 16S pure polyester yarn fell from 10,200 to 10,000 yuan/ton, a drop of 200 yuan; 21S also fell 200 yuan to 10,500; 32S saw the largest decline, from 11,900 to 11,600 yuan/ton, a weekly drop of 2.5%. This marks the second consecutive week of price softening for pure polyester yarn.

In stark contrast, the entire cotton yarn and T/C yarn series showed no change. Nearly 30 specifications, from OE7S to J40S, held steady over four days. For example, 32S cotton yarn from Xinjiang stayed at 23,800 yuan/ton, while Henan-produced was 23,700. T/C yarn also remained flat, with T65/C35 32SK from Shandong at 15,800 and Hebei at 15,500. Rayon yarn showed no adjustment either, with 10S to 30S ranging from 15,900 to 18,300 yuan/ton. This means only pure polyester yarn is falling independently, while other yarns are in a price vacuum.

Industry Logic Behind Polyester Yarn Decline: Cost Pass-Through and Demand Contraction

The decline of pure polyester yarn is not an isolated event but a chain reaction from the upstream polyester industry. Since Q2 2026, international oil prices have fluctuated weakly, dragging down PX and PTA costs and lowering the raw material cost of polyester staple fiber. Meanwhile, downstream weaving mills are in the final phase of summer orders, significantly slowing purchases of pure polyester yarn. Some mills are even actively reducing inventory and avoiding restocking.

For buyers, this decline presents a short-term opportunity. 32S pure polyester yarn has fallen to 11,600 yuan/ton, approaching the low levels of mid-2025. If upstream PTA continues to weaken, further downside is possible. For yarn mills, sustained price cuts mean compressed margins. With the spread between polyester staple fiber and pure polyester yarn narrowing, some small and medium-sized mills may face production cuts or product switches.

The 'Zero Movement' of Cotton Yarn: A Deep Industry Standoff

The complete flatness of cotton yarn prices, on the surface, signals market stability but actually reflects deep standoff in the cotton spinning industry chain. Currently, domestic cotton spot prices hover around 16,000-16,500 yuan/ton, making raw material costs rigid for mills. Downstream, gray fabric orders are sluggish, with weaving mills adopting 'need-based, small-lot, bargain' purchasing strategies. Neither side wants to break the balance first—mills refuse to cut prices, and weavers refuse to stock up. This has locked prices in a stalemate.

This 'zero movement' is not healthy for the industry. It means the market lacks effective price discovery, and the true supply-demand imbalance is temporarily masked. Once external variables emerge—such as new cotton harvests, policy changes, or export order shifts—prices could see sharp volatility. For buyers relying on cotton yarn, now is not the best time to stockpile heavily; a low-inventory, fast-turnover approach is more prudent.

Practical Recommendations

For Buyers - Lock in pure polyester yarn prices in batches: At 11,600 yuan/ton for 32S, it is at a year-low level. Consider building positions in 2-3 batches to hedge against any further declines. - Hold off on cotton yarn: With no price movement and unclear orders, maintain 7-10 days of safety stock and avoid large lock-ins during this stalemate. - Evaluate T/C yarn cost advantage: T65/C35 32SK is currently at 15,500-15,800 yuan/ton, a spread of over 8,000 yuan/ton compared to pure cotton 32S. For cost-sensitive orders, consider substitution.

For Yarn Mills - Assess profit margins for polyester yarn lines: If polyester staple fiber prices do not fall in tandem, processing margins will shrink rapidly. Adjust product mix toward differentiated or blended varieties. - Manage cotton yarn inventory flexibly: High inventory risks depreciation. Use small-lot, high-frequency sales to maintain cash flow and avoid passive stockpiling. - Hold rayon yarn prices steady: Rayon prices are stable but sales are weak. Focus on retaining existing customers rather than initiating price cuts that could trigger a chain reaction.