As the end of June approaches, the seasonal characteristics of the wool yarn market become increasingly pronounced. Latest industry monitoring data indicates that the Yangtze River Delta sweater cluster, centered around Puyuan, is experiencing typical off-season pressure—but not all categories are declining; some niche varieties are bucking the trend, reflecting a structural divergence in end-demand.
Volume Shrinks, Prices Stabilize: Supply-Demand Tug-of-War in the Off-Season
According to public market data for the week of June 23-29, 2026, overall wool yarn transaction volume in Puyuan contracted notably, while prices showed a stable-to-weak adjustment. This 'volume-down, price-stable' combination essentially reflects a tug-of-war between upstream cost support and downstream demand weakness. On one hand, non-mainstream varieties like high-elastic cotton saw price increases due to firm upstream raw materials, indicating cost-side resilience. On the other hand, mainstream all-wool knotless yarn, though stable in price (32s at about 81,700 RMB/ton), experienced declining trade volume, suggesting weakening willingness to absorb on the demand side.
Notably, while domestic wool worsted yarn prices appeared stable, actual transaction prices showed slight fatigue—meaning some mills are offering hidden discounts to maintain shipment volumes. This 'apparent stability, actual weakness' is common in the off-season, but for downstream buyers, it represents a window for negotiation.
Category Divergence: Which Varieties Are Holding Up?
Amid the overall subdued backdrop, several varieties stand out for their relative strength.
- **24s domestic wool worsted yarn**: Maintained considerable transaction volume, making it one of the most 'moving' varieties of the week. This reflects domestic wool's growing substitution for imported products in the mid-to-low end market, driven by cost-effectiveness and supply stability.
- **Wool-acrylic Iceland yarn**: Saw demand recovery, mainly for women's outerwear sweaters. This uptick may align with current fashion trends favoring 'fluffy' textures and mixed-color effects.
- **32S/2 worsted solid wool-acrylic yarn (50A/50W)**: Traded smoothly, indicating stable demand for classic blended yarns in business-casual sweaters.
- **16s rabbit-wool yarn (50/50)**: Experienced rising downstream demand, again pointing to women's outerwear. The balance between lightness and warmth in rabbit-wool blends makes them popular for transitional season stocking.
- **28NM/2 triple-blend yarn (80 cotton/10 rabbit down/10 wool)**: This variety was 'quite popular,' used for women's summer-to-autumn outerwear sweaters. The triple blend combines cotton's breathability, rabbit down's softness, and wool's warmth—a practical choice for the awkward transitional period.
Conversely, all-wool knotless yarn saw declining volume while prices remained firm. This 'price with no market' situation suggests growing inventory pressure for Australian wool suppliers and intermediate traders.
Operating Rate Decline: Off-Season Signal Transmits Upstream
A more macro indicator comes from the production end. According to public industry data, the combined knitting machine operating rate across Wujiang Hengshan, Jiaxing Honghe, and Tongxiang Puyuan has dropped to about 75%. This decline means reduced end-orders, with weaving mills actively cutting production to control inventory. This signal is more forward-looking than raw material price fluctuations alone—it directly reflects a supply chain contraction from brands to wholesale markets.
For raw material traders, the core contradiction has shifted from 'can I buy?' to 'whom do I sell to?' With operating rates expected to continue declining, wool yarn transaction volume will likely drop further in the coming two weeks, and prices will face more pronounced adjustment pressure.