In late August, the Shengze yarn market saw prices hold steady, yet the uneven trading among yarn types revealed the true structure of downstream demand. Cotton 32s remained a bestseller, polyester-viscose 65/35 40s moved briskly, while pure polyester yarn, except for 45s, saw little interest. This divergence is not accidental—it reflects a concentration of fabric orders in specific specifications and poses higher demands on buyers' inventory strategies.
Market Overview: Stable Prices, Divergent Trading
From August 28 to 30, ex-factory prices for major yarn types in Shengze were almost unchanged. Pure cotton yarns from 10s to J40s stayed within 16,200 to 26,800 CNY/ton, with 32s at 23,900, 21s at 20,400, and J21s at 22,800. Polyester-cotton blends were also flat: T65/C35 45s at 17,600, T80/C20 32s at 15,600. Viscose rayon yarn 30s was quoted at 18,300 and 40s at 19,500, with staple fiber holding at 14,400 CNY/ton.
Notably, polyester-viscose 65/35 40s showed slight strength, quoted at 16,200 CNY/ton with visibly higher volumes. In contrast, pure polyester yarn weakened overall—only 45s (16,000) saw some sales, while other counts traded thinly, with polyester staple fiber at 8,050 CNY/ton, barely changed. This pattern of "cotton strong, polyester weak, viscose stable" indicates that weavers prefer yarns with natural fiber content, responding to end-user preferences for comfort and quality.
Industry Impact: Cost Pass-Through and Order Mix
The stable yarn prices are underpinned by steady raw material costs. Viscose staple fiber at 14,400 CNY/ton has not fluctuated significantly, providing a foundation for stable rayon yarn prices. Conversely, weak polyester staple fiber caps any upside for pure polyester yarn. For mills, profit margins depend heavily on product mix—those aligned with best-selling counts (e.g., cotton 32s, polyester-viscose 40s) enjoy smooth sales and stronger pricing power, while laggards face inventory pressure.
Downstream, the popularity of cotton 32s is tied to demand for "fugui" fabric, used in home textiles and garment linings, whose stable orders support yarn volumes. The brisk trade in polyester-viscose yarn signals the start of autumn/winter fabric orders, with blends gaining traction in wool-like and casual wear applications. For buyers, this means sticking to conventional inventory lists may cause them to miss the window for hot items while accumulating dead stock in slow-moving counts.
Outlook: Consolidation with Widening Divergence
Given raw material trends and trading activity, the yarn market is expected to consolidate in the near term. Polyester staple fiber lacks upward momentum, viscose remains firm, and cotton will likely fluctuate within a range. Thus, broad price hikes or drops are unlikely, but divergence among yarn types will intensify. If pure polyester demand stays weak, selective discounting may emerge, while cotton and polyester-viscose blends may hold firm due to order support.
For mills, the key is not to bet on price direction but to adjust product lines toward best-selling counts. For traders, using the stable period to lock in supply and optimize inventory is more practical than chasing short-term spreads. In a moderately recovering demand environment, cash flow and turnover often matter more than per-ton profit.