The benchmark price of cotton yarn 32S stood at 24,725 CNY/ton on June 29, 2026, unchanged from the beginning of the month but marking the highest level in the past year. According to publicly available industry data, the price hit a low of 23,175 CNY/ton over the previous 12 months, meaning the current level represents a rebound of about 6.7% from the trough. For weaving and fabric enterprises in the middle of the textile supply chain, persistently high raw material costs are redefining profit margins.
Cost Pressure Transmits Downstream
The annual price range shows a clear cyclical pattern. The average price of cotton yarn 32S over the past year was 23,767.76 CNY/ton, with a median of 23,950 CNY/ton. The current price of 24,725 CNY/ton sits above both the average and median, indicating a relatively strong market. Notably, the annual low was 23,175 CNY/ton, while the high is the current level, creating a spread of 1,550 CNY/ton. This elasticity is critical for fabric manufacturers that rely on cotton yarn as a primary input, making procurement cost management more crucial.
From a regional perspective, quotations from major cotton yarn producing areas such as Shandong and Henan remain firm. Upstream spinning mills are operating at relatively high capacity, but the pace of raw material inventory replenishment has not accelerated significantly. This suggests market disagreement on the sustainability of current prices—some believe cost-driven increases still have room, while others worry whether downstream demand can support further hikes.
Downstream Procurement Strategies Shift
For weaving mills and fabric traders, the current price environment is forcing changes in procurement models. Companies that previously relied on spot purchases are now compelled to manage inventory cycles more proactively. The annual price data shows a fluctuation of over 1,500 CNY/ton from low to high; if companies fail to lock in low-cost supplies, raw material costs alone could erode 3% to 5% of order profits.
Meanwhile, price negotiations with end apparel brands and retailers are becoming more difficult. Fabric companies often face a lag of one quarter or more when passing costs upstream. This means if cotton yarn prices remain above 24,500 CNY/ton for the next two months, fabric ex-factory prices are likely to rise in the third quarter. Foreign trade companies must pay special attention to this time lag, as overseas buyers typically have longer procurement decision cycles, narrowing the window for price locking.