In the final week of June 2026, the Puyuan wool yarn market experienced a clear downturn in trading activity, with most varieties trading sideways. However, high-elastic cotton bucked the trend, rising 100 to 200 yuan per ton. This divergence reflects the combined effects of seasonal off-season and upstream cost pressures.
Full Onset of Off-Season Effects
According to public industry data, total transaction volumes for wool yarn fell significantly from June 23 to 29. All-wool knotless yarn saw reduced trade, but prices remained stable—32S varieties still quoted at 81,700 yuan/ton, 42S at 82,600 yuan/ton, and 48S in the 83,300 to 83,700 yuan/ton range. This 'volume down, price steady' pattern indicates weak downstream demand but supplier reluctance to cut prices.
A more telling signal came from operating rates. The comprehensive knitting machine utilization rate across the three major woolen sweater clusters—Wujiang Hengshan, Jiaxing Honghe, and Tongxiang Puyuan—dropped to around 75%, a slight decline from earlier periods. This suggests shrinking end-order volumes, with factories proactively reducing output to manage inventory.
The Logic Behind High-Elastic Cotton's Rise
Against the broadly weak market, high-elastic cotton emerged as the sole bright spot. Prices moved from the 20,500 to 21,100 yuan/ton range to 20,700 to 21,200 yuan/ton, a gain of roughly 1%. The reason traces directly to firm upstream raw material costs—producers of high-elastic cotton faced margin pressure and passed it downstream. Notably, high-elastic cotton is not a mainstream product in sweater production, often used only for decorative accents, but its price movements can serve as an early indicator of supply-demand shifts in chemical fiber feedstocks.
Other varieties remained flat. All-wool acrylic knotless yarn 30/70 held at 65,700 yuan/ton, imitation rabbit hair ice yarn at 33,900 yuan/ton, various lamb's wool yarns at 31,600 to 32,550 yuan/ton, and all-acrylic double-ply yarn at 28,500 yuan/ton. The longer prices stay flat, the greater the market divergence—once the off-season deepens, some varieties may face catch-up declines.
Implications for Downstream Procurement and Inventory
The current market poses dual challenges for sweater factories and traders. On one hand, all-wool yarn prices remain firm but volumes are falling, indicating strong buyer wait-and-see sentiment. On the other hand, high-elastic cotton's price hike signals that upstream chemical fiber costs are still rising, potentially affecting more blended varieties down the line.
For Buyers - Monitor inventory digestion of all-wool knotless yarn; if volumes continue to shrink over the next two weeks, consider waiting for price concessions before restocking. - If high-elastic cotton's uptrend persists, lock in small batch orders early to avoid peak-season cost spikes. - Compare prices of alternatives like imitation cashmere and acrylic blends; current spreads are stable, allowing for recipe adjustments to mitigate raw material risk.
For Exporters - European demand for wool products typically picks up after August; the current off-season is an ideal window for inquiries and sampling. Secure price lock-in clauses with suppliers early. - High-elastic cotton's price increase may impact blended export order quotes; discuss cost adjustment mechanisms with clients. - Track operating rates in the Wujiang-Jiaxing-Tongxiang cluster; if rates fall below 70%, delivery lead times may be affected, so plan backup capacity in advance.
Overall, the Puyuan wool yarn market is in a typical off-season adjustment phase. Price divergence means supply-demand fundamentals vary by category, requiring more granular procurement decisions. Transaction volumes will likely continue to decline next week, while the magnitude of price adjustments will depend on the tug-of-war between upstream raw material costs and downstream replenishment willingness.