In the last week of June 2026, the Puyuan wool yarn market saw a notable decline in trading activity. According to public industry data from June 23 to 29, overall transaction volumes dropped significantly, while prices remained stable to weak. This shift is not an isolated event but a clear reflection of the seasonal patterns inherent to the wool yarn sector.
Volume Contraction and Price Divergence
Among specific product categories, full Australian wool knotless yarn experienced the most pronounced decline in transaction volume, yet prices held steady. For instance, 32s full Australian wool knotless yarn was quoted at 81,700 yuan per ton, unchanged from the previous week; 42s and 48s varieties also showed no fluctuation. This combination of "volume down, price stable" indicates a standoff between supply and demand: downstream buyers are less willing to purchase, while upstream suppliers resist price cuts due to cost support.
Meanwhile, high-elastic cotton emerged as a rare bright spot. Prices for this variety edged up 100-200 yuan per ton, with the current range at 20,700-21,200 yuan per ton. The core driver is cost transmission from upstream raw materials—firm feedstock prices forced the yarn segment to raise prices. Notably, high-elastic cotton is not a mainstream raw material for sweater production; it is mainly used for accents or special effects. Nonetheless, its price movement warrants attention from buyers, as it may signal broader cost pressures accumulating along the supply chain.
Operating Rate Decline and Regional Linkages
Operating rate data further confirm the arrival of the off-season. The three core production and consumption hubs for wool yarn—Wujiang Hengshan, Jiaxing Honghe, and Tongxiang Puyuan—saw knitting machine utilization fall to around 75%. This is a significant drop from over 85% during peak season, reflecting the upstream impact of declining end-user orders.
For factories, lower operating rates mean higher fixed-cost allocation per unit, squeezing profit margins. For foreign trade companies, although this is a traditional slow period, the Q3 autumn/winter order preparation season is approaching. The current price adjustment phase may offer a window for strategic procurement.
Chain Transmission and Outlook
Looking ahead, wool yarn transaction volumes are likely to continue declining over the next week, with prices facing moderate downward pressure. However, the extent of adjustment may be limited for two reasons. First, many varieties are already at relatively low levels—for example, 32s fully acrylic single yarn is only 27,500 yuan per ton—leaving little room for further drops. Second, upstream raw material costs (especially wool and acrylic) have not softened significantly, providing a price floor.
For buyers, the current phase calls for attention to:
- Price fluctuations in differentiated products like high-elastic cotton, which may serve as leading indicators of cost changes;
- Inventory digestion of high-end varieties such as full Australian wool knotless yarn, which will determine procurement pacing ahead of peak season;
- Trends in operating rates across the three hubs—a further decline to below 70% could trigger production cuts or shutdowns, affecting future supply.