In the last week of June, the Puyuan wool yarn market experienced a notable slowdown in trading activity, with most conventional product prices remaining unchanged but transaction volumes declining, signaling the onset of the off-season. According to industry public data, from June 23 to 29, overall wool yarn transaction volumes were low, with prices stable but slightly weak. Among them, the trading volume of all-wool knotless yarn decreased, while transaction prices remained stable.
Price Divergence: Artificial High-Elastic Cotton Rises Against the Trend
In a market characterized by overall price stagnation, artificial high-elastic cotton emerged as a rare bright spot. Its price increased by 100-200 yuan per ton during the week, with the current quotation range at 20,700-21,200 yuan per ton. Although artificial high-elastic cotton is not a mainstream raw material in sweater production, it is often used as a decorative component. The direct driver of this price increase was firm upstream raw material costs, with cost pressure transmitting downstream.
All other major product prices remained flat. 32-count all-wool knotless yarn was quoted at 81,700 yuan per ton, 52-count all-wool acrylic knotless yarn (30/70) at 65,700 yuan per ton, and 48-count all-wool knotless yarn stabilized in the 83,300-83,700 yuan per ton range. Domestic wool worsted yarn, blended wool acrylic yarn, imitation rabbit hair yarn, and all-acrylic yarn showed no week-on-week fluctuations. This state of "unable to rise or fall" reflects weak supply and demand, with both buyers and sellers adopting a wait-and-see approach.
Operating Rate Decline: Off-Season Effect Fully Evident
The wool yarn market is highly seasonal, and the contraction of terminal apparel orders in summer directly impacts upstream raw material procurement. Currently, the comprehensive operating rate of knitting machines in Wujiang Hengshan, Jiaxing Honghe, and Tongxiang Puyuan has dropped to around 75%, a slight decline from the previous period. This decline indicates that weaving enterprises are actively reducing output to cope with insufficient orders.
From an industrial belt perspective, Puyuan, as the largest wool sweater distribution center in China, often serves as a leading indicator for the entire autumn-winter apparel chain. The current operating rate of 75% is relatively low, suggesting that downstream restocking willingness is weak, and intermediaries and factories prefer to digest existing inventories rather than make new purchases.
Market Outlook: Volume Contraction and Price Adjustment Likely
Based on current transaction data and operating rate trends, it is expected that wool yarn transaction volumes will continue to decline next week, with prices facing moderate adjustment pressure. Although high-end varieties like all-wool knotless yarn remain firm, their price support is weakening in a persistently weak demand environment.
Notably, the sustainability of artificial high-elastic cotton's price increase depends on upstream raw material trends. If costs continue to rise without demand support, a situation of "prices without transactions" may emerge. Buyers should be wary of this risk.