In the final week of June, the Puyuan wool yarn market saw a notable slowdown in trading activity. According to industry data, from June 23 to 29, total transaction volume remained low, with most varieties showing stable to weak prices. Only high-elastic cotton bucked the trend with a price increase. This reflects structural shifts in supply and demand as the wool textile chain enters its seasonal off-season.
Volume-Price Divergence: Mainstream Products Steady, Niche Varieties Fluctuate
Price monitoring data shows that among more than 30 tracked wool yarn varieties, only high-elastic cotton posted a price change compared to the previous week. 32-count all-wool knotless yarn stood at 81,700 yuan/ton, 52-count all-wool acrylic knotless yarn (30/70) at 65,700 yuan/ton, and 48-count all-wool knotless yarn remained in the 83,300-83,700 yuan/ton range. Pure wool worsted yarn, domestic wool worsted yarn, and blended wool acrylic yarn all held steady.
High-elastic cotton was the sole gainer, rising from 20,500-21,100 yuan/ton to 20,700-21,200 yuan/ton, an increase of 100-200 yuan/ton. While not a mainstream product in Puyuan, it is used as a decorative supplementary material in sweater production. Industry sources attribute the rise to firm upstream raw material costs, with fluctuations in chemical fiber inputs now transmitting to the yarn level.
Off-Season Signals: Operating Rates Decline, Production Contracts Across Three Regions
The core issue in the wool yarn market is not price but volume. Data shows that comprehensive knitting machine operating rates in Wujiang Hengshan, Jiaxing Honghe, and Tongxiang Puyuan have dropped to around 75%, a slight decline from earlier periods. These three clusters are key sweater production bases in Jiangsu and Zhejiang, and the synchronized slowdown signals that terminal orders are entering a seasonal trough.
Wool yarn, a highly seasonal textile raw material, is tightly linked to the sweater production cycle. Late June through August is typically a production off-season, when fabric buyers and foreign trade companies focus on destocking and awaiting autumn orders. While 75% operating rates are not extremely low, the downward trend is clear and will continue to pressure upstream yarn procurement.
Outlook: Volume Decline, Price Adjustments, and Procurement Timing
Based on current off-season characteristics, wool yarn transaction volumes are expected to continue falling in the coming week, with moderate price adjustments ahead. High-end varieties like all-wool knotless yarn, supported by rigid raw material costs, will have limited price elasticity. In contrast, high-elastic cotton, driven by chemical fiber raw materials, may see further small increases if upstream prices remain firm.
For all players in the chain, the core strategy should shift from "chasing volume" to "controlling risk." During the off-season, inventory management matters more than price negotiation, and working capital turnover will be key to navigating the cycle.