On July 10, 2026, the Shandong cotton yarn market sent a noteworthy signal: the price ranges for 21S and 32S, two mainstream counts, no longer overlapped, with the spread widening to over 2,000 yuan/ton, peaking at nearly 3,000 yuan/ton. This level of spread has been rare in the past three quarters, indicating structural changes in the upstream-downward transmission mechanism.
Price Divergence and Regional Quotation Patterns
Based on public quotes from multiple Shandong textile mills, the quotation range for 21S ring-spun high-grade knitting yarn was 22,800-24,400 yuan/ton, while for 32S the range was 24,500-26,400 yuan/ton. The lowest 21S quote came from Guanxing Textile (22,800 yuan/ton), the highest from Weifang Guanjie (24,400 yuan/ton). For 32S, the lowest was again from Guanxing (24,500 yuan/ton), the highest from Shandong Hongyang Chemical (26,400 yuan/ton).
Weifang-based mills generally quoted higher than those in the Liaocheng area, with a regional gap of about 1,200 yuan/ton for 21S and 1,500 yuan/ton for 32S. More importantly, the dispersion among mills was significantly higher for 32S—the max-min spread for 32S was 1,900 yuan/ton, compared to 1,600 yuan/ton for 21S. This suggests greater room for negotiation in 32S and reflects divergent cost control capabilities and market positioning among mills.
Industrial Logic Behind the Widening Spread
The normal spread between 21S and 32S is typically 1,500-2,000 yuan/ton, reflecting differences in raw material consumption and processing costs. 32S requires slightly more cotton per ton and demands longer, stronger fibers, so its raw material cost is inherently higher. However, the current spread of 2,000-3,000 yuan/ton clearly exceeds these fundamental differences.
On the demand side, 21S is mainly used in mid-to-low-end knitted fabrics such as T-shirts and underwear. In the first half of 2026, domestic apparel consumption showed a 'bipolar' pattern—low-cost volume products and high-end custom products grew faster, while mid-range products slowed. 21S sits at the upper edge of this 'middle ground,' facing competition from cheaper OE yarn and more cost-effective compact yarn. Meanwhile, 32S enjoys relatively stable demand in high-end knitting and weaving, especially as foreign orders demand higher quality, giving 32S stronger pricing power.
On the cost side, since Q2 2026, Xinjiang cotton spot prices have fluctuated between 16,200-16,800 yuan/ton, while imported cotton prices rose slightly due to exchange rate factors. Mills have diverged in their raw material procurement strategies: some locked in lower cotton prices through long-term contracts, enabling them to maintain low 21S prices, while those relying on spot purchases face cost inversion and are forced to raise prices or cut production. Since 32S has higher added value, mills have greater tolerance for raw material cost increases.
Survival Strategies for Mills
Facing the widening spread, Shandong mills are adopting different approaches. Guanxing Textile offered the lowest prices for both counts, suggesting strong raw material cost advantages or scale effects, pursuing a 'low-price, high-volume' strategy. Weifang-based mills like Guanjie, Jinyi, and Runfengda generally quoted higher, especially for 32S, indicating a focus on quality and customer loyalty, following a 'quality premium' path.
Shandong Hongyang Chemical quoted the highest price for 32S at 26,400 yuan/ton, 1,900 yuan/ton above Guanxing. This pricing strategy may reflect special customer relationships, customized services, or a disadvantage in raw material cost structure or capacity utilization. For buyers, this provides a key reference—when purchasing 32S, multi-sourcing can yield significantly better prices.