Price trend

According to data monitored by SunSirs, the cotton yarn market exhibited a volatile yet generally upward trend from mid-to-late April 2026, with prices continuing to rise, bolstered by the cost of raw cotton materials. As of April 24, the benchmark spot price for domestic 21S ring-spun cotton yarn in the Shandong region stood at approximately 22,933 RMB/ton—an increase of 100 RMB/ton compared to two weeks prior. Similarly, the benchmark spot price for 32S ring-spun cotton yarn was around 24,300 RMB/ton, also marking an increase of 100 RMB/ton over the same period.

Market analysis

Recently, the price of cotton yarn has seen a marked increase. In the futures market, the price of the main Zhengzhou cotton yarn contract has trended upward amidst fluctuations; it stood at 22,390 RMB/ton on April 22 and rose further to 22,500 RMB/ton on April 23. In the spot market, the national average price for C32s ordinary combed ring-spun yarn rose gradually from 23,215 RMB/ton on April 15 to 23,421 RMB/ton on April 23, recording a maximum single-day increase of 113 RMB/ton. In the Xinjiang region, the price of 32s cotton yarn climbed from 23,100 RMB/ton on April 20 to 23,300 RMB/ton on April 23; prices for yarn of the same specification in the interior regions were adjusted upward in tandem, reaching 23,300 RMB/ton on April 22.

Although yarn prices have tracked the upward trend in cotton, downstream demand remains sluggish. Fabric mills are exercising caution in their purchasing, resulting in generally light trading activity across the market. Actual transactions largely consist of fulfilling prior orders or are negotiated on a case-by-case basis; traders are prioritizing destocking and show little inclination to replenish inventory. Operating rates among spinning mills remain stable but lean slightly toward the weaker side, while yarn inventory levels have edged upward. Orders are predominantly short-term and small-scale in nature, placing significant pressure on small and medium-sized enterprises.

Continuously rising costs have led to a significant compression of spinning margins. In the Xinjiang region, spinning profitability shifted from a gain of 96.6 RMB/ton on April 20 to a loss of 267.03 RMB/ton on April 23; spinning enterprises in the interior regions faced even more acute pressure, with margins plummeting to -1,809.13 RMB/ton on April 22—a marked deterioration compared to the preceding period. Cotton prices remain firm, bolstered primarily by factors such as a year-on-year decline in domestic cotton acreage, stricter regulatory controls in the Xinjiang production zone, the continued depletion of commercial inventories, and an expanding supply-demand gap projected for the new crop year. As of April 10, nationwide commercial cotton inventories had dropped to 4.5637 million tons, reflecting a smooth year-on-year rate of inventory reduction.

Market Outlook

As of the 24th, market attention remains focused on actual sowing progress and weather conditions in Xinjiang, as well as the resumption of operations and order recovery within the downstream weaving sector. Overall, cotton yarn prices are trending upward, driven by the strength of raw material markets; however, the sluggish recovery in end-user demand is constraining the extent of these gains. In the short term, market dynamics are expected to remain primarily cost-driven, with prices anticipated to fluctuate at a high level.

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