Polyester FDY prices across three major producing areas in Zhejiang have shown an unusual divergence. On June 26, public quotes for 150D/96F semi-dull AA grade ranged from 8,500 to 8,750 yuan/ton in Hangzhou, 8,500 to 8,710 yuan/ton in Shaoxing, and 8,750 yuan/ton in Tongxiang—a spread of 250 yuan/ton, the widest in the past three months. Even between the two largest producers, Tongkun Group quoted 8,750 yuan/ton while Rongsheng Petrochemical offered only 8,500 yuan/ton, also a 250 yuan gap.
Capacity concentration and quote dispersion
Zhejiang is China's most concentrated province for polyester FDY capacity, with Hangzhou, Shaoxing, and Tongxiang hosting top players like Rongsheng, Tongkun, and Tiansheng. Normally, regional price differences for the same grade are only 50-100 yuan/ton, driven by freight and payment terms. The current 250 yuan spread exceeds normal fluctuation.
This reflects differences in inventory levels and order backlogs among producers. Rongsheng's low 8,500 yuan quote suggests rising inventory pressure, likely from new production lines coming online. Tongkun's insistence on 8,750 yuan probably stems from a higher proportion of differentiated products or a healthier order book, reducing its need to cut prices.
Quotes in Shaoxing are even more fragmented: Juxing at 8,500 yuan, Jiabao at 8,510 yuan, and Tiansheng at 8,710 yuan—a 210 yuan gap within the same region. This indicates that customer structures and product grades vary significantly among local mills, and price signals are amplifying those differences.
Downstream transmission blocked
Weaving mill operating rates remain high at 75%-80%, near the year's peak, but grey fabric prices have risen only 1.5% month-on-month, far below the 3% increase in FDY raw material costs. This means per-meter margins for weavers are being squeezed.
More critically, recovery in end-use garment orders has been weaker than expected. Foreign buyers prefer small, fast-turnaround orders and are reluctant to commit to large, long-term contracts. This forces weavers to avoid building large raw material inventories. Procurement strategies have shifted from monthly price locks to weekly spot inquiries and just-in-time replenishment. This short-cycle buying habit prevents FDY producers from passing cost increases downstream, pushing them into price competition for limited orders.
Reshaping regional competition
The competitive landscape among Hangzhou, Shaoxing, and Tongxiang is changing. Traditionally, Tongxiang, with Tongkun and Xinfengming, held strong pricing power in FDY. But Rongsheng's aggressive low price in Hangzhou signals it is leveraging its integrated PX-PTA-polyester chain to launch a price war for market share.
Shaoxing's market shows a "big in the middle, small at both ends" pattern: large mills like Tiansheng quote high, while smaller players like Juxing and Jiabao price close to cost. This divergence hints at future capacity consolidation—smaller mills with weaker cost control may have to cut output or switch products if low margins persist.