In the second quarter of 2026, China's textile raw material market presented a striking divergence. On one side, spandex surged 12.66% quarter-on-quarter, and viscose staple fiber rose 7.74%; on the other, nylon POY, acrylonitrile, and nylon FDY plummeted 13.20%, 12.89%, and 12.72% respectively. Among the 17 monitored varieties in the textile sector, 11 fell, all by more than 5%, dragging the sector's average change to -5.15%. This 'few winners, many losers' pattern signals a deep structural shift along the textile supply chain.
Spandex and Viscose: Supply Contraction Driving Isolated Gains
Spandex was the quarter's biggest gainer, closing at 29,666.67 yuan/ton, up 12.66% from the start of Q2 and 21.09% year-on-year. Viscose staple fiber followed, ending at 14,200 yuan/ton, up 7.74% quarter-on-quarter and 9.06% year-on-year. The strength of these two varieties owes less to broad demand recovery and more to supply-side discipline. Since late 2025, the spandex industry has entered a phase of capacity reduction, with several small and medium-sized plants idling or cutting output. Market circulation shrank, and leading producers maintained strong pricing power, pushing prices higher. Viscose staple fiber, meanwhile, faced rising raw material costs for cotton pulp and environmental production curbs, tightening supply and forcing prices up.
Importantly, these upstream price hikes have not fully passed through to downstream yarns. Rayon yarn rose only 3.02%, while cotton yarn 21S and 32S gained a mere 2.33% and 1.44% respectively. This suggests that weaving and garment manufacturers have limited ability to absorb higher raw material costs, and the price gains are largely concentrated at the upstream end, compressing margins for midstream processors.
Nylon and Polyester: Double Hit from Overcapacity and Weak Demand
In stark contrast to the gainers, the entire nylon and polyester product lines suffered heavy losses. Nylon POY fell the most, down 13.20%; nylon FDY dropped 12.72%; nylon DTY lost 12.49%. The polyester camp was equally battered: polyester DTY fell 11.89%, polyester POY 11.41%, polyester FDY 10.59%, and polyester staple fiber 10.52%. Upstream PTA also declined 11.79%, and acrylonitrile fell 12.89%.
The root cause is a concentrated eruption of supply-demand imbalance. On one hand, massive new capacity for nylon and polyester came online between 2024 and 2025, keeping operating rates under pressure. On the other hand, growth in end-use textile and apparel exports has slowed, and domestic demand has shown no significant improvement. For nylon, its application in sportswear and down jacket fabrics faces growing substitution by modified polyester products, eroding its market share. Polyester, meanwhile, is struggling with volatile crude oil prices and overcapacity in PTA, weakening its cost support.
Cotton and Silk: Stability and Concerns Amid Divergence
Cotton-related varieties performed relatively steadily in Q2. Cotton lint rose 4.56% quarter-on-quarter and 15.88% year-on-year, indicating a rising price center. Cotton yarn 21S and 32S also posted small gains, but far below the increase in lint, signaling compressed margins in the spinning segment. Raw silk continued its weakness, falling 5.20% quarter-on-quarter and 9.42% year-on-year, reflecting restored sericulture capacity that has not been matched by growth in silk export orders, leaving the market in a loose balance that is unlikely to change soon.
From a chain-wide perspective, the Q2 price structure sends a clear signal: upstream raw materials (spandex, viscose, cotton) have gained pricing power through supply constraints or cost rigidity, while midstream processing segments (nylon, polyester, yarns) are trapped by overcapacity and weak demand. This 'strong upstream, weak midstream' pattern means textile companies must rethink their inventory management and procurement strategies.