Shengze Yarn Market: Diverging Trends for Cotton and Synthetic Fibers, Adjustment Expected

The latest yarn market quotations from Shengze on July 5, 2026, reveal a clear divergence between cotton and synthetic yarns. While popular counts of cotton yarn like 21s and 32s remain actively traded, overall transaction volumes are not increasing. In contrast, pure polyester yarn 50s is experiencing sluggish sales, while 45s is seeing moderate demand due to its use in polyester-cotton linings. This uneven performance across product types reflects structural changes in downstream demand rather than a broad recovery.

Looking at specific data, prices for pure cotton yarn across all specifications remained virtually unchanged between July 3 and July 5. Whether it is 10S OE from Shandong or 21S from Anhui, no price fluctuations were recorded. This suggests a state of 'price without volume' in the cotton yarn market. Polyester-cotton and polyester-viscose yarns show similar patterns, with only isolated cases like polyester-viscose 32S rising by 100 yuan/ton to 14,300 yuan/ton. The narrow trading range indicates a lack of clear directional guidance from the market.

Raw Material Transmission and Product Divergence

Adjustments in polyester staple fiber and viscose staple fiber prices are key variables affecting future yarn prices. Currently, the average price of 1.56*38mm cotton-type polyester staple fiber stands at 7,500 yuan/ton, while viscose staple fiber averages around 14,200 yuan/ton. The easing of raw material prices provides room for subsequent adjustments in pure polyester and viscose yarns. Industry data suggests that when upstream raw material prices show a trend change, yarn prices typically follow within one to two weeks. The current sluggish sales of pure polyester 50s are precisely a preemptive market reaction to expected lower raw material costs.

From a product structure perspective, the active trading of cotton yarn 21s and 32s is primarily driven by orders for specific fabrics like jet-loom luxury textiles. These orders are typically seasonal and cannot sustain overall market momentum. Similarly, the movement in viscose yarn 10s is tied to the production cycle of diamond cotton fabric. These localized bright spots cannot mask the generally subdued trading activity across most product categories. For buyers, this means more precise matching with downstream orders rather than blanket stockpiling.

Regional Industrial Clusters and Inventory Pressure

Shengze, as a key textile industry cluster in China, often serves as a bellwether for broader market trends. The latest quotations show high price convergence across major production regions including Shandong, Jiangsu, Zhejiang, and Anhui, reflecting high market transparency and intense price competition. However, it is noteworthy that certain specifications, such as T80/C20 45S polyester-cotton yarn (Shanghai) and T90/C10 60S (Heilongjiang), both recorded declines of 100 yuan/ton, possibly linked to local inventory pressures.

Against a backdrop of weak overall demand, high inventory levels are a sword hanging over yarn mills. The isolated price increases in polyester-viscose yarn are driven more by cost factors than demand pull. It is expected that pure polyester and viscose yarns will undergo moderate adjustments in the coming period, likely in the range of 200-300 yuan/ton. Foreign trade enterprises should pay particular attention to this trend, as lower synthetic yarn prices could lead to downward revisions in downstream fabric quotations, thereby impacting profit margins on export orders.

Practical Recommendations

For Buyers - Closely monitor price trends of polyester staple fiber and viscose staple fiber. If raw material prices continue to decline, consider postponing purchases of pure polyester and viscose yarns to await price adjustments. - Although cotton yarn prices are stable, downstream orders have not shown significant improvement. Adopt a just-in-time purchasing strategy to avoid inventory build-up and associated capital costs. - For polyester-cotton and polyester-viscose yarns, focus on actively traded counts like 32S and 45S, using the current price stability to lock in costs.

For Foreign Trade Enterprises - Keep a close watch on RMB exchange rate fluctuations and changes in overseas orders. With synthetic yarn prices expected to decline, leave room for price reductions in your quotations. - For export-oriented categories like polyester-cotton linings, consider signing short-term floating price agreements with yarn mills to hedge against raw material price volatility. - Leverage the price transparency of the Shengze yarn market to compare quotations from different production regions and select the most cost-effective suppliers.