Zhili Grey Fabric Market Enters Consolidation: Prices Stabilize Across the Board, Demand Recovers but Upside Limited

In mid-May 2026, the grey fabric market at Zhili Cotton Cloth City experienced a rare across-the-board price freeze. From standard cotton varieties to rayon crepe, polyester-viscose gabardine, cotton-spandex stretch fabrics, and corduroy, all monitored specifications saw no price change compared to three days earlier—an unusual phenomenon during the traditional pre-summer peak season. Although sales volume has rebounded sequentially, the complete absence of price movement signals a market in consolidation, characterized by 'volume up, price flat.'

Supply-Demand Dynamics Behind Price Stability

According to the latest quotation data, cotton grey fabric prices ranged from RMB 5.55/m to RMB 8.65/m, while combed varieties reached RMB 7.15/m to RMB 8.55/m. Rayon grey fabric held at RMB 4.82/m to RMB 5.75/m, and polyester-viscose fabrics ranged from RMB 4.60/m to RMB 7.98/m. Cotton-spandex stretch fabrics showed a wider spread, from RMB 6.70/m to RMB 11.90/m, reflecting the premium for differentiated elastic products.

Notably, polyester-cotton blends (T65/C35, T80/C20, T90/C10) also remained flat across all specifications. For example, T80/C20 45x45 110x76 63-inch quoted at RMB 5.40/m, and T90/C10 45x45 88x64 63-inch at RMB 4.92/m. These blends are highly sensitive to raw material costs, and their price stability implies that upstream polyester staple fiber and cotton prices have also remained relatively stable in the short term.

Why Sales Recovery Didn't Drive Prices Up

Typically, rising sales volumes would push prices higher, but the current market shows a divergence of 'volume up, price flat.' Several key factors explain this phenomenon.

First, downstream procurement is dominated by restocking for immediate needs. Fabric traders and garment factories are placing small-lot, frequent orders, as end brands remain extremely cautious about inventory management and avoid taking on raw material price risk. Second, although weaving mill operating rates have improved, grey fabric inventories remain at historically medium-to-high levels, with no supply shortage pressure. Third, cotton and chemical fiber raw material prices have stabilized in early May, removing the cost-push driver for fabric price increases.

Looking at product structure, prices for standard cotton items (e.g., 30x30 68x68 63-inch at RMB 6.35/m) and high-count combed varieties (e.g., 60x60 90x88 64-inch at RMB 7.15/m) both held steady, indicating no structural preference shift between mid-low-end and high-end products—further confirming a 'restocking, not hoarding' market character.

Regional Industrial Cluster Spillover Effects

As a major hub for children's apparel and grey fabrics, Zhili's price signals serve as a bellwether for surrounding markets like Shengze and Keqiao. The current 'sideways' price action in Zhili implies that upstream weaving mills' profit margins are squeezed into a very narrow band—raw material costs are not falling, but fabric selling prices cannot rise, forcing mills to rely on scale production and lean management to maintain profitability.

For chemical fiber fabric mills in Shengze and printing plants in Keqiao, stable grey fabric prices reduce cost uncertainty in fabric procurement, enabling more accurate quoting for orders. However, if end demand fails to sustain its recovery, grey fabric prices may face modest downward pressure.

Outlook: Narrow Range Consolidation to Continue

Overall, the Zhili grey fabric market is expected to remain in a narrow consolidation range in the near term. Upside is limited by high inventories and cautious downstream sentiment, while downside risks are cushioned by raw material cost support and mills' willingness to hold prices. Over the next two weeks, standard cotton varieties are likely to fluctuate within ±RMB 0.10/m, while blended varieties may see slightly wider swings but will likely stay within the current price box.

It is worth noting that the peak season for summer fabric demand is nearing its end, and order composition will gradually shift towards autumn/winter fabrics. Demand for rayon and polyester-viscose fabrics may weaken first, while inquiries for corduroy, denim, and other winter items are expected to increase. Buyers should closely monitor the rotation of product categories and adjust inventory positions accordingly.

Practical Recommendations

For Buyers - Current prices are at a short-term floor; restock at normal production pace but avoid excessive inventory buildup to prevent losses after peak season. - Pay close attention to price changes in rayon and polyester-viscose grey fabrics—these categories have the most room to fall if raw material costs soften. - For autumn/winter items like corduroy and denim, consider placing phased orders before mid-June to lock in current low prices.

For Weaving Mills - Use the current price stability period to optimize product mix: reduce exposure to standard cotton varieties and increase production of differentiated items such as stretch fabrics and high-count combed fabrics. - Strengthen communication with downstream fabric traders to gain visibility into end-order trends and avoid blind production that leads to inventory buildup. - Monitor cotton and chemical fiber futures prices closely; if raw material costs decline significantly, consider proactive price cuts to stimulate orders.