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Over the past year, fluctuations in cotton yarn prices have been closely tied to shifts in both domestic and international markets. Since May of last year, exports of cotton yarn products have seen a noticeable downturn. Major overseas markets have exhibited weak demand, while domestic cotton yarn prices have begun to rise. This shift has prompted many companies to refocus their attention on the domestic market, recognizing its untapped potential. Recently, during the 6th China International Textile and Yarn Exhibition (Autumn/Winter), numerous cotton textile enterprises shared that they have been adjusting their strategies in two key ways: first, by redirecting their market focus toward domestic sales; and second, by enhancing product value by producing higher-value-added cotton yarns tailored to meet domestic needs.
Since May of last year, exports of various types of cotton yarn have continued to decline. According to data from the China Textile Industry Association, exports of most cotton yarn products have fallen this year, with the exception of a slight increase in cotton sewing threads. For instance, between January and April, the export of carded cotton yarn dropped to 19,225 tons, a 32.85% decrease compared to the same period last year. Combed cotton yarn exports fell to 40,786 tons, down 33.50% year-over-year. Overall, total cotton yarn exports declined by 22.84%. Faced with these challenges in the export market, domestic cotton yarn prices have risen, offering a glimmer of hope for many businesses. For example, by late May, the price of 32-count cotton yarn in the domestic market had climbed from 16,200 yuan/ton at the start of the year to 18,500 yuan/ton—a significant increase. This upward trend in domestic market demand has encouraged more companies to explore opportunities within the local market.
One representative from Wuxi Cotton Sales mentioned: "In response to changes in the international market, we’ve had to make adjustments. While maintaining our export volumes abroad, we’re now paying closer attention to domestic demand for cotton yarn." Historically, Wuxi Yimin focused primarily on exporting high-end products like 240- and 270-count singeing yarns. However, with the global financial crisis leading to reduced demand in foreign markets, the company began shifting its focus toward the domestic market. The domestic market’s growth, driven by policies aimed at boosting domestic consumption, has helped stabilize demand. As one salesperson noted, "Since March of this year, we've observed a noticeable increase in domestic demand, particularly for resource-intensive products."
This renewed emphasis on the domestic market has spurred Wuxi Yimin to ramp up its sales efforts domestically. At the exhibition, we noticed that fabrics woven from their products, previously destined solely for European markets, are now drawing interest from domestic clients as well. Other cotton textile enterprises have similarly intensified their focus on the domestic market. During the networking events at the exhibition, we saw a significant number of domestic buyers engaging directly with manufacturers.
In addition to market adjustments, cotton textile enterprises are also adapting their product offerings. Reflecting the evolving demands of domestic and international markets, companies are diversifying their product lines. This year's yarn show aimed to showcase advancements in high-grade cotton yarns, multi-fiber blends, and functional yarns, highlighting innovations in functionality and differentiation. For example, Shandong Ruyi and Nantong Shuanghong emphasized compact spinning yarns, which are known for their smooth texture, reduced fuzziness, and increased strength—qualities highly valued by fabric manufacturers. Companies like Huafu are also showcasing new high-end yarns, including blends of polyester, viscose, Tencel, modal, soybean fiber, bamboo fiber, and other innovative materials.
Huafu’s colored yarns represent another cutting-edge product line. Their team highlighted the application of advanced spinning technologies, including Siro spinning, jet spinning, rotor spinning, and compact spinning. They also introduced new products like colored yarns with segmental dyeing and mercerized cotton yarns designed to mimic the sheen of cashmere. Despite challenges faced by some cotton textile enterprises, many remain optimistic. By adapting their market strategies and product lines, these companies aim to capitalize on emerging opportunities in the domestic market.
As Xu Wenying of the China Cotton Textile Industry Association pointed out, high-quality, high-density cotton products with compact spinning characteristics are increasingly appealing to market demands. Enterprises like Shandong Wei Bridge are developing premium compact spinning yarns to meet these expectations. These efforts underscore the industry’s commitment to innovation and adaptation, ensuring that Chinese cotton textiles remain competitive both domestically and internationally.