Shengze Yarn Market Enters a Stable Phase: Structural Opportunities in Selective Categories
On June 29, 2026, the Shengze market reported flat prices across all major yarn categories, including cotton, T/C, polyester, and rayon yarns, with zero day-over-day change. This price plateau is typical during the off-season, but active sales in several sub-categories signal structural shifts in downstream weaving demand.
Price Stability: A Common Off-Season Phenomenon
Data from the latest price list shows that over 30 specifications, from cotton 10S to J40S, and polyester 21S to 50S, remained unchanged from the previous trading day. Cotton 21S and 32S maintained active sales but did not drive prices up, indicating a balanced supply-demand dynamic. T/C yarn saw limited trading volume and prices adjusted steadily, while rayon yarn, except for 10S and 30S, traded quietly. This volume-price divergence suggests end-user orders are mainly for just-in-time replenishment, lacking a trend-driving force.
Category Divergence: Concentrated Demand and Rising Needs
Three categories stand out. Cotton 21S and 32S remain actively traded, with 32S widely used in air-jet luxury brocade, indicating stable demand from home textile or apparel sectors. T/R 65/35 32s/2 has seen a notable demand uptick, primarily for TR stripe conductive fabric, pointing to incremental needs in functional or workwear segments. Pure polyester 45s outperforms other specifications in sales, while polyester staple fiber holds steady at around CNY 7,700/ton, suggesting that the strength in 45s may be linked to a shift in downstream polyester fabric orders.
Cost and Expectation Squeeze
Viscose staple fiber is currently trading at CNY 14,200/ton, a level maintained for weeks. Rayon yarn prices are stable but market consensus expects a moderate adjustment ahead. This expectation is grounded—ample upstream viscose capacity means any slowdown in downstream demand could quickly transmit price pressure to the yarn level. For pure polyester yarn, despite stable staple fiber costs, the overall trend is weak and volatile, indicating narrowing mill margins, with some specifications possibly near break-even.
Practical Recommendations
For Buyers - Maintain regular replenishment for cotton 21S and 32S, but monitor the sustainability of air-jet luxury brocade orders; if orders decline, reduce inventory accordingly. - For T/R 65/35 32s/2, lock in short-term prices with mills to avoid potential supply tightness from concentrated demand. - For rayon yarn, defer bulk purchases and focus on just-in-time procurement for 10S and 30S, waiting for clearer adjustment signals.
For Mills (Spinning/Weaving) - Increase production allocation for pure polyester 45s, but keep raw material inventory under 15 days to hedge against polyester staple fiber price fluctuations. - If demand for T/R 65/35 32s/2 in TR stripe conductive fabric continues, consider developing differentiated products to capture higher margins. - Overall, with no upward price catalyst, mills should prioritize controlling finished goods inventory and avoid aggressive production during the off-season.
The current price stability in Shengze is not simply a calm sea—it is a window where downstream demand structure is subtly adjusting. For buyers, capturing the rhythm of active categories offers more practical value than betting on price swings.