A notable signal emerged in Shandong's cotton yarn market at the end of August: the price gap between 21S and 32S high-grade ring-spun yarns has widened to 1,900-2,200 CNY/ton, compared with a typical 1,500 CNY/ton spread previously. Quotes also show clear stratification, with 21S ranging from 22,800 to 24,200 CNY/ton (a 1,400 CNY span) and 32S from 24,700 to 26,400 CNY/ton (a 1,700 CNY span). This divergence is no accident—it reflects how raw material costs, capacity structures, and demand dynamics are driving different pricing logic for different yarn counts.
Background: Dynamics Behind the Quotes
On August 28, five major Shandong mills—Guanxing Textile, Weifang Guanjie, Weifang Jinyi, Weifang Runfengda, and Shandong Hongyang Chemical—simultaneously updated their cotton yarn quotes. These companies are located in Shandong, a key cotton yarn production region, making their quotes a bellwether. For 21S yarn, Guanxing Textile offered the lowest at 22,800 CNY/ton, while Weifang Guanjie had the highest at 24,200 CNY/ton. For 32S, Guanxing again led low at 24,700 CNY/ton, and Shandong Hongyang Chemical topped at 26,400 CNY/ton. Notably, Weifang Jinyi and Runfengda quoted identical prices for both counts (23,100 and 24,800 CNY/ton), suggesting similar cost structures or pricing strategies.
The quote differences stem from variations in raw material procurement, equipment efficiency, and order portfolios. For instance, Guanxing, as a large enterprise, may secure lower cotton costs through bulk purchasing, enabling competitive pricing; Weifang Guanjie's higher quotes may reflect product positioning or recent inventory costs. For downstream buyers, this stratification offers clear value-selection opportunities within the same yarn specifications.
Industry Impact: Three Logics Behind the Widening Gap
First, asymmetric cost pass-through. Yarn prices correlate highly with cotton, but different counts have different cotton usage and processing costs. 21S uses slightly more cotton but has lower processing fees; 32S requires finer cotton and more complex processing. When cotton prices fluctuate, higher-count yarns exhibit greater cost sensitivity, leading to larger swings in 32S quotes and thus widening the spread.
Second, regional capacity structure differences. Shandong's ring-spinning capacity is concentrated, but mills vary in equipment age. Higher-quoting mills may use newer machines with higher depreciation but more stable quality; lower-quoting mills may have older equipment but manage costs well. In weak demand, low-price mills secure orders more easily, while high-price mills rely on quality premiums.
Third, downstream demand divergence. 21S yarn is mainly used for knitwear like T-shirts and underwear, with relatively rigid demand; 32S is more for woven fabrics or high-count knits, more sensitive to consumer trends. The current domestic market shows "volume for mass products, quality for premium products," leading to steady sales for 21S and fiercer price competition for 32S, as some mills cut quotes to secure orders, exacerbating the gap.