On July 27, the Shengze yarn market saw flat official quotes but clear shifts in transaction structure. Polyester yarn 32s and 50s experienced notably sluggish sales, while rayon yarn 30s saw localized activity driven by diamond cotton fabric orders. This divergence signals that the upcoming round of price adjustments may not be uniform across categories.
Category Divergence: Cotton Yarn Stable with Volume, Polyester Yarn Under Pressure
In the pure cotton yarn segment, 32s and 40s remained the main trading items, supported by production demand for jet polyester-cotton fabrics. Prices were unchanged from the previous session: 10S OE from Shandong at 16,000 RMB/ton, 32S from Jiangsu at 23,700 RMB/ton, and 40S from Shanghai at 24,900 RMB/ton. However, combed yarns like J21S (Shandong, 22,700 RMB/ton) and J32S (Anhui, 24,800 RMB/ton) saw limited volume, indicating downstream caution on premium products.
Polyester yarn weakness was more pronounced. While quotes for 21S (Shandong, 10,600 RMB/ton), 32S (Zhejiang, 11,700 RMB/ton), and 45S (Jiangsu, 15,800 RMB/ton) held steady, actual sales of 32s and 50s dropped markedly. The key driver was a correction in upstream polyester staple fiber prices. Industry data shows the average price for 1.56*38mm cotton-type polyester staple fiber has fallen to around 7,800 RMB/ton. This softening at the raw material level has reduced inventory-building appetite along the chain, and polyester yarn mills are facing rising stock pressure.
Rayon Yarn: 30s Stands Out, Viscose Cost Remains Sticky
Unlike other rayon yarn specifications, 30s became the day's highlight due to orders for diamond cotton fabric (a common rayon-blend apparel fabric). Suzhou-origin 30S rayon yarn was quoted at 18,300 RMB/ton, with relatively smooth sales. But 40S (Jiangsu, 19,500 RMB/ton) and 50S (Anhui, 20,700 RMB/ton) saw limited activity, confirming that end demand is concentrated in specific niches rather than broad-based. On the cost side, viscose staple fiber prices remained stable with minor adjustments, holding at a center price of around 14,200 RMB/ton. At this level, spinning mills have thin profit margins, leaving little room for price concessions unless viscose prices decline.
Blended Yarns: T/C and T/R Stable, 45s Volume Increase Worth Watching
All T/C (T65/C35) specifications held flat, but a positive signal emerged: volumes for 80/20 and 90/10 blends in 45s increased. This specification is mainly used for polyester-cotton lining fabrics, and the pick-up may indicate that autumn/winter garment orders are starting to drive lining demand. In T/R (T65/R35), 32s/2 saw decent sales at 19,700 RMB/ton, reflecting sustained orders for workwear or uniform fabrics.
Short-Term Outlook: Adjustment Window Opens, But Not a Broad Decline
Overall, the Shengze yarn market is entering a phase of structural adjustment. Polyester yarn faces downward price pressure due to raw material weakness, especially in 32s and 50s, where destocking is key. Pure cotton yarn may stay stable in the short term, but any fluctuation in cotton prices could quickly transmit. Rayon yarn has limited adjustment room due to rigid viscose costs, so opportunities will be more structural across specifications.
Market participants expect a moderate price adjustment over the next one to two weeks, likely led by polyester yarn declines, with other categories following or making up for lost ground. For downstream weaving mills, this could be a window to restock at lower prices, but close monitoring of upstream raw material trends is essential.