What moves yarn prices: fiber, conversion and the market

A yarn price is fiber cost plus conversion cost, pushed up or down by the market. Fiber is usually the biggest share, so cotton, polyester and viscose moves come through first, weighted by the blend. Conversion cost depends on the count (finer yarn runs slower and costs more), the spinning system, power, labour and how fully the mill is running. On top of that sits demand. This includes the domestic buying season, export orders and how much stock weavers and spinners are holding. Duties or policy that change the cost of imports and exports also matter. That is why yarn can move even when fiber is flat.