On July 10, cotton yarn prices in Shandong market showed clear divergence, with the spread between 21S and 32S ring-spun high-grade cotton yarn widening to 1700 yuan/ton, far exceeding the normal range. Within the same specification, price differences among companies reached up to 1600 yuan/ton, indicating a pricing logic restructuring in the industry.
Price Structure Anomaly
32S cotton yarn was quoted between 24500 and 26400 yuan/ton, while 21S ranged from 22800 to 24400 yuan/ton. Based on normal spinning cost calculations, the reasonable spread between 32S and 21S is typically 800-1200 yuan/ton. The current 1700 yuan/ton gap suggests that downstream market demand for finer yarns is significantly stronger than for coarser ones.
Specifically, the highest 32S quote came from Shandong Hongyang Chemical at 26400 yuan/ton, while Guanxing Textile offered only 24500 yuan/ton—a gap of 1900 yuan/ton. For 21S, Guanjie Textile quoted 24400 yuan/ton, while Guanxing Textile offered 22800 yuan/ton—a difference of 1600 yuan/ton. Such large price divergence within the same region is rare in the cotton yarn market over the past two years.
Divergent Strategies of Regions and Enterprises
Two logics underlie the price divergence. First, inventory pressure varies: large enterprises like Guanxing Textile may adopt low-price strategies to quickly destock, while medium-sized firms like Guanjie Textile and Shandong Jinyi prefer to maintain profit margins. Second, customer structures differ: for 32S, export-oriented knitting companies are more willing to pay a premium for quality stability, explaining Shandong Hongyang Chemical's high quote.
From the industrial belt perspective, companies in Weifang (Jinyi, Runfengda) showed more concentrated quotes—21S at 23200 yuan/ton and 32S at 24800 yuan/ton—indicating stronger price coordination in that region. Guanxing Textile's quote deviated significantly from the regional average, possibly due to its diversified product lines or channel strategies.
Industry Signals from Downstream Demand Transmission
The widening spread between 21S and 32S directly reflects uneven demand in knitting versus weaving sectors. 32S is mainly used for mid-to-high-end knitted fabrics like T-shirts and underwear, where recent export order recovery boosted demand for finer yarns. 21S is more used for workwear, denim, and other heavy fabrics, where weak domestic consumer spending has pressured prices.
This signal means for buyers: 32S may have further upside, requiring early lock-in; 21S may continue to weaken, suitable for bargain restocking. For exporters, the high premium on 32S (26400 yuan/ton) may squeeze export margins, requiring attention to exchange rates and tax rebate policy changes.