Polyester FDY Pricing Divergence Intensifies, East China Chemical Fiber Belt Faces Profit Reallocation

On June 26, 2026, spot prices for polyester FDY (150D/96F semi-dull) in East China showed significant divergence: Rongsheng Petrochemical quoted 8,500 yuan per ton, while Tongkun Group quoted 8,750 yuan per ton, a spread of 250 yuan. Such a wide gap for the same grade product in the same regional market is rare in recent years. This is not an isolated fluctuation but a concentrated release of structural tensions within the industry.

Triple Pressures Behind Pricing Divergence

The pricing gap directly reflects differences in cost control capabilities. Rongsheng, leveraging its integrated refining-petrochemical chain, can maintain profits even at 8,500 yuan. Tongkun, relying on scale and brand loyalty, chooses 8,750 yuan to uphold premium and channel stability. In contrast, smaller players like Zhejiang Juxing (8,500 yuan) and Zhejiang Jiabao (8,510 yuan) operate closer to cost lines, lacking upstream raw material support. Public data shows East China FDY capacity utilization at 78% in H1 2026, down 4 percentage points year-on-year, squeezing mid-tier players.

Downstream Demand Transmission

This divergence is a result of pressure transmitting upstream from the weaving sector. Weaving mills in Shaoxing and Xiaoshan are operating at only 65% capacity, reducing their tolerance for high-priced raw materials. Buyers increasingly seek cost-effective supply, amplifying price competition among FDY suppliers. Integrated firms like Rongsheng defend low-price positions, while Tongkun holds high ground via brand power. Mid-tier suppliers face a dilemma: cut prices to zero profit or lose customers.

Regional Industrial Belt Fallout

The pricing spread directly impacts the East China chemical fiber belt, which hosts ~60% of national FDY capacity. A 250-yuan gap means monthly profit differences of 1.5-2 million yuan for a 10,000-ton-per-month plant. This will accelerate resource reallocation: leading firms with capital and raw material advantages may expand market share, while undifferentiated SMEs may be forced to cut production or exit. In the long run, this drives the FDY industry from fragmented competition toward oligopoly, but short-term price wars and capacity consolidation will cause pain across the supply chain.

Practical Recommendations

For Buyers - Use this divergence window to optimize supplier mix: lock in long-term stable orders from integrated giants at low prices (e.g., 8,500 yuan), but verify product consistency and delivery reliability. - Small suppliers' low prices often come with payment or quality risks; conduct small trial orders before full commitment. - Establish multi-supplier benchmarking but avoid excessive price squeezing that could destabilize supply.

For Mills - Mills without upstream integration should accelerate product differentiation, e.g., developing functional FDY (flame-retardant, antibacterial, moisture-wicking) to escape commoditized price competition. - Leading firms can offer limited concessions to secure long-term contracts from key clients, using cost advantage to squeeze mid-tier rivals. - All mills should closely monitor PTA futures and use hedging tools to lock raw material costs, preventing losses from widening during price wars.