On June 26, 2026, the polyester staple fiber (PSF) market exhibited a rare price divergence: industrial-grade fiber balls held firm at 15,500 RMB/ton, while spinning-grade 1.56 dtex x 38mm PSF was quoted at only 7,250-7,330 RMB/ton, a spread exceeding 8,000 RMB/ton. This structural gap reflects fundamentally different supply-demand dynamics.
Industrial Fiber Balls: Strong Support from Environmental Demand
Industrial fiber balls (30-50mm diameter) from Henan Kaijie were uniformly priced at 15,500 RMB/ton, maintaining their high level seen this year. These products, used in wastewater treatment and oilfield water reinjection, benefit from two factors: first, stricter environmental policies have raised industrial water treatment standards, shortening replacement cycles and boosting demand; second, the water treatment filtration material industry is fragmented, giving quality suppliers strong pricing power.
However, this price is near a two-year high. If environmental inspections ease in the second half of the year or if downstream sectors like coal chemicals and steel reduce operating rates, a correction is possible. Buyers should consider quarterly batch price locking to avoid peak purchases.
Spinning-Grade PSF: Off-Season and Cost Headwinds
In stark contrast, spinning-grade PSF (1.56 dtex x 38mm, melt direct spinning, cotton type) in Suqian, Jiangsu, was quoted at 7,250-7,330 RMB/ton, down about 2% from last month. This level is approaching the breakeven point for many small and medium mills.
Three factors drive the decline: first, June is a traditional textile off-season, with downstream yarn mills operating at below 60% capacity, buying only for immediate needs; second, feedstock PTA prices have fallen about 3% from recent highs due to oil price volatility and new PX capacity, weakening cost support; third, the PSF industry remains oversupplied, with melt direct spinning plants running at over 80% capacity.
Industry Transmission: Pressure Across the Chain
The weakness in spinning-grade PSF is transmitting downstream. Weaving clusters in Shengze and Nantong report rising grey fabric inventories, with some mills starting production cuts. For buyers, the current 7,250-7,330 RMB/ton level is a year-to-date low, but planned polyester plant maintenance in July-August (affecting about 2 million tons of capacity) could trigger a temporary rebound.
For mills, PTA weakness may persist into Q3. We recommend spinners build moderate inventories at current lows, but not exceeding 30 days of consumption, to avoid post-maintenance price drops.