Cotton Yarn 21S Price Consolidates at High Level: Cost Transmission Pressure Intensifies in Textile Chain

The benchmark price of cotton yarn 21S has been consolidating at 23,400 yuan per ton for several days, a level that marks the top of the one-year price range. From the low of 21,766.67 yuan per ton to the current high of 23,400 yuan, the cumulative increase has reached 7.5%. However, the zero daily gain signals a shift from a unilateral uptrend to a high-level stalemate.

High Price and Cost Transmission

Currently, the price of cotton yarn 21S is not only at its highest point in a year but also shows a spread of over 1,633 yuan per ton from the cycle low. For spinning mills, this means significantly higher raw material procurement costs. Whether these costs can be smoothly passed downstream depends on the absorption capacity of weaving and apparel sectors.

Looking at the annual price trajectory from June 2025 to June 2026, cotton yarn 21S experienced a complete fluctuation cycle from a low of 21,766.67 yuan per ton to a high of 23,400 yuan, with a median value of approximately 22,583 yuan per ton. The current price is about 3.6% above the median, indicating a relatively strong position. However, the zero daily gain suggests a lack of new upward drivers in the short term.

Industry Impact: Profit Redistribution Along the Chain

The high-level stalemate has differentiated effects on various segments of the industrial chain. Upstream cotton suppliers benefit from high prices, but spinning mills face a dilemma: maintaining high quotes may lose orders, while reducing prices would compress profit margins.

For weaving enterprises, cotton yarn 21S is a commonly used raw material specification for conventional fabrics. Its sustained high price means rigidly rising production costs. Against a backdrop of lackluster terminal apparel demand, fabric companies struggle to fully pass on costs through price hikes, squeezing profit margins from both ends.

From a foreign trade perspective, the combination of RMB exchange rate fluctuations and overseas buyers' price sensitivity adds challenges to cotton yarn and fabric exports. International buyers have limited acceptance of price increases, and some orders may shift to lower-cost regions like Southeast Asia.

Practical Recommendations

For Buyers - With prices at high levels, purchase on a need-to-order basis to avoid tying up capital in large inventories. - Monitor cotton futures and spot trends; if raw material prices show signs of easing, consider phased replenishment. - Negotiate short-term floating price contracts with suppliers to hedge against price volatility.

For Foreign Trade Firms - Include price adjustment clauses in quotes to transfer some raw material risk to overseas clients. - Develop alternative raw materials or blended products to reduce reliance on a single cotton yarn specification. - Track price differentials in Southeast Asian markets and adjust sourcing to optimize cost structures when necessary.