Damask sheeting and sateen sheeting are not necessarily mutually exclusive. They speak to different aspects of weaving yarn into sheets, and it is possible to achieve a damask sateen sheet.
Damask refers to a pattern (typically a stripe, but other patterns can show up) where changes in the direction of the yarns being woven result in a directional change in the nap. It's like when you vacuum a rug - if you go back and forth over different sections of a short pile rug, the "back" stroke looks lighter (or darker) than the "forth" stroke. Just so, a damask weave results in a permanent alteration of the nap of the fabric, resulting in a pattern being "imprinted" on the sheet.
"Sateen" is a type of weave, where there are two yarns going left-right for every yarn going up-down. A typical weave has one yarn going left-right and one going up-down. By doubling the number of yarns on one axis, you result in a smoother, silkier-feeling final product.
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Damask cotton sheets are made using a special weaving technique that creates a patterned, reversible fabric, while sateen cotton sheets have a smooth, silky feel achieved through a unique weaving process that produces a lustrous sheen on one side. Damask sheets tend to be more durable and have a matte finish, while sateen sheets are softer and have a luxurious drape.