On the first day of July, the Shengze yarn market did not see a broad rally, but the divergence among varieties sends a signal worth heeding across the supply chain. Cotton yarn prices firmed, with 32S sales rising slightly, mainly feeding into the production of luxury fabric. Rayon yarn 10S and 30S saw niche demand for air-jet diamond cotton. Polyester yarn 45S continued its recent sales lead, but upstream polyester staple fiber prices have weakened, creating a delicate balance between end-user demand and raw material weakness.
Variety Divergence: Which Are Moving, Which Are Waiting?
Comparing price lists from June 30 and July 1, no specifications showed price changes, but this does not mean the market is static. The firm tone in cotton yarn is more evident in transaction pace and bargaining space, with 32S moving faster due to luxury fabric orders. The niche demand for rayon yarn 10S and 30S, used in air-jet diamond cotton, indicates a wave of differentiated demand in home textiles or apparel fabrics.
Polyester yarn 45S leads sales among its peers, with the latest center price at 15,300 yuan/ton. However, upstream polyester staple fiber (1.56*38 cotton type) has dropped to around 7,700 yuan/ton and remains in a weak adjustment channel. This means cost support for polyester yarn is eroding. If end-user orders fail to sustain, 45S prices could face downward pressure. Industry data also shows polyester staple fiber inventories are accumulating, with little near-term rebound momentum.
Viscose staple fiber prices held steady at an average of 14,200 yuan/ton, keeping rayon yarn prices stable. But the niche demand for rayon yarn is not broad-based—it is concentrated in specific specifications and end uses. This suggests downstream weavers are not restocking, but buying in small batches for specific orders.
Industry Impact: Order Signals from Luxury Fabric and Diamond Cotton
Luxury fabric, a glossy, drapey polyester or blended fabric used in women's wear and formal attire, is driving 32S cotton yarn demand. For weavers in Shengze and surrounding areas, this implies moderate growth in high-count cotton yarn demand, but not enough to lift the entire cotton yarn market.
Air-jet diamond cotton, a fabric with a diamond-like pattern produced on air-jet looms, typically uses rayon or polyester-cotton blended yarn. The niche demand for 10S and 30S rayon yarn is directly tied to orders for this fabric. The buying pattern suggests a short-cycle, quick-turn demand rather than a trend reversal. Weavers must watch procurement timing—if these rayon yarn specs run short, delivery schedules could be affected.
Outlook: Sideways Trading, Watch Three Variables
Across all varieties, the Shengze yarn market is likely to trade sideways in the near term. Polyester yarn has 45S support, but upstream staple fiber weakness will cap upside. Cotton yarn may stay firm for 32S due to luxury fabric orders, but other specs lack momentum. Niche rayon yarn demand won't shift the overall supply-demand balance, and stable viscose prices limit rayon yarn volatility.
Three variables to watch: first, whether polyester staple fiber can stabilize around 7,700 yuan/ton, which will set the cost floor for polyester yarn; second, the sustainability of luxury fabric and diamond cotton orders—if order cycles extend, they could drive demand for more yarn specs; third, dissolving pulp prices, which are tight globally and could push up viscose costs if they rise.