This week, the cotton yarn market generally exhibited stable prices alongside sluggish trading activity. As of September 11, the reference ex-factory spot price for 21S ring-spun cotton yarn in Shandong was approximately 23,700 RMB/ton, remaining unchanged from the previous week; the reference ex-factory spot price for 32S ring-spun cotton yarn was around 25,100 RMB/ton, also holding steady compared to the previous week.
The cotton yarn market has recently exhibited a trend of stabilizing prices alongside sluggish trading activity. The national average price for ring-spun C32s yarn fluctuated between 24,241 and 24,341 RMB/ton; during early September, mainstream quotes held steady at approximately 24,341 RMB/ton. Market trading remained lackluster, with downstream fabric mills limiting purchases to essential restocking; a strong wait-and-see attitude prevailed, driven largely by bearish sentiment. Prices for 32s cotton yarn in Xinjiang remained relatively stable at 23,900–24,000 RMB/ton, whereas quotes in inland regions were slightly higher, holding steady at 24,200 RMB/ton. Although some spinning enterprises showed a strong determination to maintain price levels—particularly given that profit margins for medium-to-high count yarns remained decent thanks to raw material cost support—sales of standard yarn varieties were slow. Persistent overall inventory pressure continued to limit transactions at higher price points.
Cotton prices on the raw material side have continued to decline, weakening cost support for yarn. The delivered-to-factory price for Xinjiang 3128-grade lint cotton gradually fell from 17,998.5 RMB/ton in early September to 17,660.5 RMB/ton on September 10; cotton prices in inland regions weakened in tandem, dropping to 18,400 RMB/ton. With the new cotton harvest approaching, the market is generally adopting a "buy-as-needed" approach, reflecting a clear preference for inventory control. Spot spinning margins have continued to recover; in the Xinjiang region, margins rebounded from -418.29 RMB/ton on September 2 to 67.03 RMB/ton on September 10, shifting from loss to profit. While spinning margins for inland enterprises remain negative, the scale of losses has narrowed—standing at -1,424 RMB/ton on September 10—marking a significant improvement over the previous period.
On the demand side, the recovery of orders during the traditional "Golden September and Silver October" peak season has fallen short of expectations; downstream textile enterprises are purchasing cautiously—largely adopting a "buy-as-needed" strategy—and lack the impetus to restock. Compounded by the launch of cotton options trading on the Zhengzhou Commodity Exchange, the market has entered a period of tug-of-war between bulls and bears ahead of the new cotton harvest's market debut. Consequently, 100% cotton yarn prices lack a clear directional driver and are expected to fluctuate within a range in the short term; future price trends will hinge on the initial purchase prices for the new cotton crop and the actual volume of downstream orders realized.
Overall, the cotton yarn market is currently in a phase of tug-of-war ahead of the new cotton harvest, with trading of cotton options on the Zhengzhou Commodity Exchange intensifying market volatility. Orders during the traditional "Golden September" peak season have fallen short of expectations, and weak restocking momentum is curbing any upward movement in yarn prices. In the short term, cotton yarn prices are likely to continue fluctuating within a specific range, with future trends largely dependent on the initial purchase price of new cotton and the recovery of downstream orders.
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