The yarn market in Shengze at the end of June can be summed up in one sentence: calm on the surface, but with undercurrents. Cotton yarn 32S saw a slight uptick in sales, but overall prices remained stable and weak. Pure polyester yarn 45S became a rare bright spot, while rayon yarn continued to adjust amid fluctuations in viscose staple fiber. For textile professionals, understanding these signals is more important than simply watching price changes.
Cotton Yarn: 32S Stands Out, but Overall Weakness Persists
Data from June 27-28 shows that cotton yarn prices across all specifications remained flat, but market feedback tells a different story. Sales of 32S increased slightly, while other specifications like 21S, 40S, and J40S were sluggish. This 'volume-price divergence' reflects a subtle shift in downstream weaving mills' procurement strategies: it is not a broad demand recovery, but rather a restocking of regular moving items after inventory depletion.
On the price front, cotton yarn 10S (OE) at 16,000 yuan/ton, 32S at 23,600 yuan/ton, and J40S at 26,800 yuan/ton have been trading sideways for weeks. Raw material cotton prices have fluctuated little recently, but the recovery in end-use apparel orders has fallen short of expectations, leaving both spinners and weavers in a stalemate—afraid to raise prices but unwilling to cut them. For buyers, the current value proposition of cotton yarn is not compelling; a hand-to-mouth procurement strategy is recommended to avoid being caught off guard by sudden market shifts.
Pure Polyester and Polyester-Cotton Yarn: 45S is the Only Bright Spot
The pure polyester yarn market is generally quiet, but sales of the 45S specification are noticeably better than others. At 15,300 yuan/ton, the price of 45S is unchanged from June 26. This phenomenon is driven by rigid demand from downstream sectors—45S is commonly used in polyester sewing thread or specific fabrics, where orders are relatively stable. In contrast, regular specifications like 21S and 32S are lackluster.
Polyester staple fiber prices remain around 7,700 yuan/ton, providing limited cost support for pure polyester yarn. The market is expected to continue its adjustment phase, and whether the strength of 45S can persist depends on the sustainability of downstream orders. For polyester-cotton yarn, T65/C35 32S at 16,300 yuan/ton and T80/C20 32S at 15,400 yuan/ton saw low trading volumes and consolidating prices. This suggests that blended yarns have not yet gained significant substitution traction in the end market, with pure cotton and pure polyester remaining the mainstream choices.
Rayon Yarn: Viscose Fluctuates, Adjustment Cycle Not Over
The rayon yarn market is the most noteworthy segment in this round. Although prices across all specifications are unchanged (10S at 15,700 yuan/ton, 30S at 18,400 yuan/ton, 40S at 19,500 yuan/ton), upstream viscose staple fiber has dropped to around 14,200 yuan/ton and is showing a fluctuating adjustment trend. This price level is significantly lower than the same period last year, reflecting ongoing overcapacity pressure in the viscose industry.
Rayon yarn 10S remains active due to its use in diamond cotton fabric, but trading volumes for other specifications are low. From an industry chain perspective, the weakening of viscose staple fiber prices means cost support for rayon yarn is eroding. If downstream demand does not pick up simultaneously, rayon yarn prices face a risk of catching down. The near-term outlook for rayon yarn is one of continued adjustment, and buyers should closely monitor subsequent movements in viscose staple fiber.
Polyester-Viscose Yarn: 40S/2 Trading Volume Up, But Prices Unchanged
The polyester-viscose yarn market shows a local bright spot: trading volumes for the 40S/2 specification have increased. This specification is commonly used in medium-to-heavyweight suiting or trouser fabrics, and the volume increase may signal an early start to autumn/winter fabric orders. However, prices have not yet reacted, with T65/R35 32S at 14,200 yuan/ton and 40S/2 at 21,800 yuan/ton, both unchanged from June 26.
This development is worth noting for foreign trade companies. If the momentum in polyester-viscose yarn continues, it could indicate stronger willingness among downstream apparel brands to place replenishment orders for the fall/winter season. For now, however, this remains an isolated case and has not yet formed a trend.