Hutang Yarn Market Stabilizes, Pure Polyester Yarn Prices Decline

The Hutang yarn market presented a clearly divergent picture in the final week of June. While cotton yarn, T/C yarn, and rayon yarn prices remained entirely stable, pure polyester yarn saw a decline of 200-300 yuan per ton. This localized softening signals a noteworthy shift for weaving mills monitoring raw material costs.

Market Overview: Cotton Steady, Chemical Fiber Under Pressure

Specific data shows that prices for cotton yarn from OE7S to J40S were completely flat between June 24 and 28. For example, OE7S from Anhui, Xinjiang, and Henan all held at 15,800-15,900 yuan/ton; 32S from Xinjiang was 23,800 yuan/ton, and combed J32S from Hebei was 24,800 yuan/ton, with no movement. The T65/C35 T/C yarn series from 21SK to 45SK also remained unchanged, with Shandong-produced 32SK at 15,800 yuan/ton. Rayon yarn from 10S to 30S stayed in the 15,900-18,300 yuan/ton range, showing no adjustment.

This suggests a temporary equilibrium in cost transmission along the cotton textile chain, with mills and downstream buyers agreeing on current price levels. However, the price drop in pure polyester yarn broke this calm. 16S pure polyester yarn fell from 10,200 to 10,000 yuan/ton, 21S from 10,700 to 10,500 yuan/ton, and 32S from 11,900 to 11,600 yuan/ton. While not drastic, this change stands out in an otherwise stable market.

Industry Implications: The Logic of Cost Easing

The price reduction in pure polyester yarn is likely due to weakening upstream costs for PTA and polyester chips. In June, international crude oil price fluctuations combined with the release of PX capacity have weakened the cost support for polyester raw materials. Mills have had to lower offers to maintain sales volume. What does this mean for downstream weaving mills?

• For factories primarily using polyester for weaving or knitting, raw material procurement costs will directly decrease, potentially improving profit margins slightly.
• However, the price drop in pure polyester yarn could trigger a comparison effect with other chemical fiber varieties. If rayon or T/C yarn follows suit, a broader cost-decline trend may emerge.
• Cotton mills face a weakened relative advantage: with cotton yarn prices firm and the price gap with T/C yarn narrowing, some orders may shift toward chemical fiber.

From a regional industry cluster perspective, Hutang, as an important yarn distribution hub in Changzhou, serves as a bellwether for weaving clusters in southern Jiangsu and surrounding areas. The current price decline in pure polyester yarn may trigger restocking demand at chemical fiber weaving factories in Changzhou, Jiangyin, and Zhangjiagang.

Practical Recommendations

For Buyers - Pure polyester yarn prices have entered a short-term downward channel. Purchase as needed but avoid large stockpiling, waiting for further price signals. - Cotton yarn prices are stable. If raw material inventory is sufficient, maintain a just-in-time purchasing strategy without rushing to lock in prices. - Monitor the price gap between T/C yarn and pure polyester. If pure polyester continues to fall, the T65/C35 series may see adjustments, so consider delaying procurement decisions.

For Export Companies - For export orders involving polyester content, consider including a raw material price fluctuation clause with clients to hedge against future price increases. - Cotton yarn export quotes can remain at current levels, but be mindful of the impact of RMB exchange rate fluctuations on actual returns. - Develop differentiated products (e.g., blended or functional yarns) to reduce dependence on single raw material prices and enhance bargaining power.