In the summer of 2026, the Keqiao textile market experienced a sequential recovery, but the rebound was uneven. The latest fifth issue of the China Keqiao Textile Index shows that the domestic market rebounded month-on-month after an earlier decline, with the price index rising. However, compared with the same period last year, orders and prices for conventional varieties have not returned to high levels. Meanwhile, the foreign trade sector presented a different picture—international demand rebounded month-on-month, with export prices and volumes rising together, indicating strong overseas demand for Chinese fabrics.
Domestic Market: Sequential Recovery but Structural Divergence
The domestic market's sequential recovery was more evident in differentiated products. Prices for conventional items like 50s cotton and rayon remained stable around 57 RMB/kg and 38 RMB/kg, but sales velocity lagged behind last year. In contrast, functional fabrics like nylon-spandex stretch fabric and modal-spandex jersey, despite higher unit prices (e.g., 98 RMB/kg for nylon-spandex), saw sustained procurement from downstream brands and OEMs. This coexistence of 'volume contraction with stable prices' and 'volume and price rise' means buyers are shifting from stockpiling to precision replenishment, demanding higher inventory turnover efficiency.
Foreign Trade Market: Structural Opportunities Behind Price-Volume Growth
Foreign trade performance was the highlight of this index. According to industry public data, the July 2026 Keqiao foreign trade index showed a month-on-month rebound in international demand, with export prices and quantities rising simultaneously. This trend is closely linked to the rebalancing of global supply chains: on one hand, textile capacity recovery in some Southeast Asian countries fell short of expectations, leading orders back to China; on the other, demand from major markets like the US and EU for mid-to-high-end fabrics, especially sportswear and outdoor functional fabrics, remained stable. Notably, Vietnam's textile and garment exports are expected to reach $17.8 billion in 2026, with its upstream fabric still heavily reliant on Chinese imports, providing a stable intermediate goods export channel for Keqiao enterprises.
Industrial Belt Response: Keqiao's Accelerated Shift from 'Volume' to 'Quality'
As one of the world's largest textile distribution centers, Keqiao's index directly reflects the pulse of China's textile industry. Behind the fifth issue of the 2026 index is an accelerated transformation among local enterprises from 'competing on price' to 'competing on product.' Profit margins for conventional varieties have been compressed below 5%, while those for differentiated fabrics remain at 15%-20%. This forces local weaving and dyeing companies to increase R&D investment, particularly in functional areas like nylon-spandex, modal blends, and flame retardants. At the same time, the penetration of digital services like 'Xiaoge Zhaobu' is changing traditional procurement models, reducing time costs for buyers but also increasing price transparency, further driving product innovation.