Cotton yarn prices posted marginal gains in the final week of June 2026, with 21S and 32S variants rising 0.14% and 0.10% respectively. However, this positive signal was overshadowed by deep declines in chemical fiber feedstocks. Monitoring data from the China National Textile and Apparel Council shows that 13 out of 17 major textile commodities fell week-on-week, with acrylonitrile plunging 6.92%, PTA dropping 5.10%, and polyester DTY following with a 2.60% decline. The sector's average weekly change was -1.65%, and commodities with declines exceeding 5% accounted for 11.8% of the monitored basket.
Background
The core driver of this price divergence is a cost collapse in upstream petrochemical raw materials. Acrylonitrile prices fell from 10,833 yuan/ton at the start of the week to 10,083 yuan/ton by the weekend, setting a record for single-week declines this year. PTA's simultaneous slump is directly linked to loosening crude oil prices and high inventory levels in the polyester chain. All polyester filament varieties—POY, FDY, DTY—declined, with drops between 1.62% and 2.60%, reflecting strong wait-and-see sentiment in the weaving sector.
In contrast, cotton yarn prices bucked the trend with modest gains. Despite a 1.23% weekly drop in raw cotton, 21S and 32S cotton yarns maintained positive growth, indicating that spinning mills are compressing margins to support prices. Viscose staple fiber and rayon yarn prices were flat, while spandex and nylon product declines were limited to under 1%, showing relatively better resilience for regenerated cellulosic fibers and differentiated chemical fiber varieties.
Industry Impact
For downstream weaving and garment manufacturers, the price divergence demands more granular procurement strategies. The firmness of cotton yarn may push some orders toward alternatives like polyester-cotton blends, while the persistent decline in polyester prices creates a buying window for chemical fiber fabrics. Notably, polyester yarn fell 1.79%, less than polyester filament, suggesting better capacity adjustment in the short-spinning segment compared to the draw-texturing segment.
Raw silk prices dropped 1.99% week-on-week and 10.12% year-on-year, making it the only commodity in the textile basket with an annual decline. This highlights persistent weakness in the silk consumer market, where high-end textile demand is recovering more slowly than mass-market segments. Spandex, though down 0.56% for the week, still shows a 21.09% year-on-year increase, indicating that the supply-demand fundamentals for elastic fibers have not reversed fundamentally; the short-term movement is more about market sentiment adjustment.
From an inventory perspective, the sharp falls in PTA and acrylonitrile will accelerate destocking in the polyester and acrylic chains. For chemical fiber plants, current prices are approaching breakeven for some producers, increasing the likelihood of production cuts and maintenance in the coming weeks. Cotton mills, meanwhile, face the dual squeeze of high raw material costs and insufficient end-user orders, which may further pressure operating rates.