Cotton Yarn 21S Price Hovers at High Levels: Shifting Procurement Logic in the Textile Downstream

The benchmark price of cotton yarn 21S settled at 23,333.33 RMB/ton on July 20, just 133.34 RMB shy of the one-year high of 23,466.67 RMB/ton. The gap from the year's low of 21,866.67 RMB/ton has reached 1,466.66 RMB, meaning buyers now pay over 6.7% more per ton compared to the lowest point in the past year.

Industry Signals Behind the High Price

From an annual perspective, the 23,333.33 RMB/ton is not an isolated spike. Over the period from July 20, 2025, to July 20, 2026, the average price was 22,469.86 RMB/ton, with the current price about 3.8% above that average. The median value of 22,666.67 RMB/ton is also nearly 700 RMB below the current price, indicating a clear upward shift in the price center over the past twelve months.

More telling is the price trajectory: the current price is unchanged from the previous day, with zero daily growth, but has fallen 0.28% from the beginning of the month. This pattern of 'high-level consolidation' rather than 'surge and collapse' suggests a tight balance between supply and demand—spinning mills are reluctant to cut prices due to raw material (cotton) cost support, while downstream weaving mills are cautious about high-priced purchases, resulting in a standoff.

Industrial Transmission: From Spinning to Weaving to Export

Cotton yarn 21S is a basic input for weaving, used mainly for conventional plain weave, twill, and some knitted fabrics. The current high price has varied impacts on downstream enterprises of different sizes.

Large weaving mills, having locked in lower-priced supplies through annual contracts, face relatively manageable cost pressure. However, small and medium-sized factories relying on spot purchases are now paying about 6% more per ton compared to last year's level of around 22,000 RMB/ton. If fabric order prices cannot be adjusted upward accordingly, their profit margins will be significantly squeezed.

The impact on the foreign trade segment is more complex. Overseas buyers typically lock in fabric prices on a quarterly or semi-annual basis. The current high cotton yarn price means that new orders must be quoted on a higher cost base, but overseas buyers have limited tolerance for price increases. Some Southeast Asian customers have already started sourcing from Indian and Vietnamese cotton yarn suppliers, creating substitution pressure for Chinese spinning mills.

Practical Recommendations

For Procurement Managers - With prices at the high end of the annual range, shorten the procurement cycle for regular items from monthly to bi-weekly to lock in short-term prices and avoid sudden spikes. - Monitor cotton futures; if the Zhengzhou Cotton Exchange main contract falls below 14,500 RMB/ton, cotton yarn prices may follow suit, presenting an opportunity for replenishment. - Negotiate a 'floating price plus minimum volume' hybrid procurement model with spinning mills to reduce price volatility risk on large single orders.

For Foreign Trade Companies - Include a price fluctuation clause in new order contracts, stipulating that if raw material prices fluctuate beyond ±5%, both parties will renegotiate fabric prices. - Monitor cotton yarn quotes from Southeast Asia; current domestic 21S cotton yarn is already 2-3% higher than Vietnamese equivalents, so assess the feasibility of overseas sourcing. - Offer quarterly price-locking services to long-term clients to stabilize order volumes and share the burden of high raw material costs.