Ring-Spun Cotton Yarn Prices Diverge: Spread Between 21S and 32S Widens, Signaling Structural Shift in Shandong Industrial Belt

The ring-spun cotton yarn market showed a notable signal on July 2: the price spread between the two main counts, 21S and 32S, is widening. According to public quotes from multiple Shandong-based mills, 21S high-grade knitting yarn is priced between 22,600 and 24,400 CNY per ton, while 32S of the same specification ranges from 23,900 to 26,400 CNY per ton. The spread, typically around 1,500 CNY, has expanded to between 1,300 and 2,000 CNY. This is not an isolated adjustment by one mill but a collective reflection across industrial clusters in Weifang and Guanxian.

The Logic Behind Price Divergence

Looking at the details, the lowest 21S quote came from Guanxing Textile at 22,600 CNY, while its 32S quote was 23,900 CNY, a spread of only 1,300 CNY. Meanwhile, the highest 32S quote reached 26,400 CNY (from Hongyang Chemical), exceeding the highest 21S quote of 24,400 CNY by 2,000 CNY. This widening gap indicates divergent demand elasticity downstream. 21S is mainly used for mid-to-low count knitted fabrics like T-shirts and underwear, which are price-sensitive and face fierce competition. 32S is more often used for high-count knitted or woven fabrics, where buyers prioritize quality stability and are willing to pay a premium.

Shandong, a major cotton-spinning hub, saw different pricing strategies among mills in Weifang, Guanxian, and Liaocheng. Weifang-based Jinyi Yarn and Runfengda Textile quoted identical prices for both counts (23,200 for 21S and 24,800 for 32S), suggesting strong price coordination. In contrast, Guanxing Textile's 21S quote was 22,600, 600 CNY below the Weifang average, implying an aggressive volume-driven strategy for low-count yarn, while maintaining a reasonable margin on 32S. This coexistence of divergent strategies indicates that the industrial cluster has yet to reach a pricing consensus.

Cost and Demand Dynamics

The price divergence fundamentally reflects an incomplete pass-through from upstream cotton costs to downstream demand. In the first half of 2026, domestic cotton prices remained high and volatile, but the spread between high-grade and low-grade cotton widened. Tight supply of high-grade cotton directly pushed up the cost of 32S and above, while ample low-grade cotton kept 21S costs relatively stable. Meanwhile, downstream knitted garment orders underwent structural adjustments in Q2: fast-fashion orders slowed, while demand for quality and functional knitted products remained resilient. This led 32S buyers to pay a premium for consistent quality.

For buyers, the current divergence means more granular price comparison is needed. The same count can vary by up to 1,800 CNY (21S) or 2,500 CNY (32S) between different mills. Simply looking at the lowest price is insufficient; factors like yarn evenness, strength CV, and neps must be considered. For mills, the divergence also reflects capacity utilization: low-price mills may face inventory pressure, while high-price mills may be running near full capacity.

Practical Recommendations

For Purchasers - Build a count-specific comparison model: Don't just look at the lowest price for a single count. Compare the spreads between 21S and 32S to understand whether a supplier is clearing inventory or protecting margins. - Add quality verification for 32S purchases: Price differences may include hidden quality premiums. Request recent Uster evenness reports or nep counts from suppliers. - Monitor price linkage between Weifang and Guanxian: Significant price differences exist across regions. Consider cross-regional sourcing but factor in logistics costs and delivery lead times.

For Foreign Trade Enterprises - Use spread volatility to lock forward contracts: With the current 32S-21S spread wider than normal, consider spread hedging in futures or forward markets if you expect a reversion. - Highlight count differentiation in quotations: When quoting overseas clients, list 21S and 32S prices separately with quality specs to avoid confusion caused by the large spread. - Watch shipment pace in Shandong: Low quotes from mills like Guanxing may signal rising inventory pressure, potentially leading to price cuts. Avoid locking long-term fixed-price contracts during a downward cycle.