The June 28 Hutang yarn market quotes reveal a clear divergence: cotton-based yarn prices remained unchanged, while pure polyester yarn continued to weaken. 32S pure polyester yarn fell 300 yuan/ton in a single week, with 16S and 21S also dropping 200 yuan/ton. This contrast is not accidental but reflects the tug-of-war between raw material cost transmission and terminal demand.
Cotton Yarns: Price Anchoring in Weak Supply and Demand
All-cotton and T/C yarns showed no price changes between June 24 and 28. For example, 32S all-cotton yarn from Xinjiang remained at 23,800 yuan/ton, while Henan-produced was at 23,700 yuan/ton. Rayon yarn also held steady, with 30S rayon yarn at 18,300 yuan/ton. This stability is supported by cotton and viscose staple fiber costs. Xinjiang's cotton planting area has not fluctuated significantly this year, and viscose staple fiber plant operating rates remain low, providing a price floor.
However, on the demand side, downstream weaving mill operating rates have not recovered notably. Industry data shows that small and medium-sized weaving mills in Jiangsu and Zhejiang have an average operating rate of around 60%, with gray fabric inventory pressure persisting. This suggests that cotton yarn price stability is more a passive balance than demand-driven. If upstream raw material prices soften, cotton yarn's stability could break.
Pure Polyester Yarn: Overcapacity Pressure Released First
Pure polyester yarn was the only category to see price declines. 32S pure polyester yarn dropped from 11,900 to 11,600 yuan/ton, a weekly decline of 2.5%. Polyester staple fiber, its upstream raw material, has been weakening recently. The polyester chain is characterized by high operating rates and high inventories, with PTA and MEG prices under pressure. Polyester staple fiber plant inventory days have risen above 10, forcing some plants to cut prices to destock.
Demand is also unoptimistic. Pure polyester yarn is mainly used in home textiles, linings, and some workwear fabrics, which are facing slowing export orders and domestic consumption downgrading. Compared with cotton yarns, pure polyester yarn has higher price elasticity and is more sensitive to supply-demand changes. This price cut signals destocking in the polyester chain. If downstream procurement does not improve, further declines are possible.
Regional Industrial Belt Reaction: Hutang as a Bellwether
Hutang, as an important yarn distribution center in Jiangsu, often leads other markets in price changes. The early price cut in pure polyester yarn may trigger follow-up moves in surrounding areas like Nantong and Shaoxing. For weaving mills, this divergence means procurement strategies need adjustment: cotton yarns can be purchased on demand, while pure polyester yarn requires close monitoring of inventory and price trends to avoid bulk hoarding during a decline.
Notably, T/C yarn prices did not fall in tandem. T65/C35 32SK T/C yarn remained stable at 15,500-15,800 yuan/ton. This indicates that blended yarns, due to the rigid cost of cotton fiber, have better price resilience than pure polyester yarn. But if pure polyester yarn continues to weaken, the cost advantage of blended yarns will expand, potentially attracting some users to switch from pure cotton to blends.