Polyester Staple Fiber Prices Near Cost Line, Signaling a Profit Redistribution in the Textile Chain

The polyester staple fiber market is experiencing a notable price correction. According to industry public data, as of July 1, 2026, the benchmark price stood at 7,418.65 yuan per ton, down 5.27% from 7,831.69 yuan per ton a month earlier. The current price sits in the lower-middle range of the past year's price band, with an annual low of 6,267.17 yuan, a high of 8,426.02 yuan, and a median of 7,346.6 yuan. This suggests that if the downtrend continues, prices will soon test cost support levels.

Key Drivers of the Price Decline

This decline is not an isolated event but the result of a convergence of loosening upstream raw material costs and weakening downstream demand. On the cost side, prices of PTA and monoethylene glycol, the main raw materials for polyester staple fiber, have been weakening over the past quarter, directly lowering production costs. On the demand side, the end-use textile and apparel market did not see the expected restocking wave at the end of the second quarter. Weaving enterprises have adopted a just-in-time purchasing strategy, maintaining a cautious stance on raw material procurement.

Notably, while the current price still shows a year-on-year increase (the annual average price is 6,963.91 yuan per ton), the month-on-month decline is the steepest in the past three months. This sends a clear signal: the era of high profits in the chemical fiber segment is ending. Over the past two years, prices surged to a yearly high of 8,426.02 yuan per ton due to crude oil price volatility and supply chain disruptions, leaving ample profit margins. However, with continuous capacity expansion and slowing demand growth, the supply-demand balance has reversed.

Impact on Industrial Clusters

This price movement has a significant impact on major chemical fiber industrial clusters. In key production areas like Jiangsu and Zhejiang, profit margins for small and medium-sized chemical fiber companies are being squeezed considerably. For firms with weaker cost control, the current price is near the break-even point, potentially forcing some to reduce production or undergo maintenance, which could create supply-side pressure in the future.

For downstream textile fabric clusters such as Shengze, Keqiao, and Nantong, lower raw material costs mean reduced procurement expenses. If this trend continues, gross margins for fabric companies could recover in the third quarter. However, whether this benefit translates into actual orders depends on restocking intentions from end-brand apparel companies. Currently, destocking cycles in European and American markets are not fully complete, and the recovery in export orders remains weak.

Price Outlook and Procurement Window

From a price range perspective, the current price of 7,418.65 yuan per ton is about 15% above the annual low of 6,267.17 yuan but only about 1% above the median of 7,346.6 yuan. This indicates that prices have largely returned to historical median levels, and the potential for further significant declines may be limited.

For buyers, this is a noteworthy window. If downstream demand shows no clear improvement in July-August, prices could dip below 7,000 yuan per ton, triggering supply-side adjustments as some producers hit cost floors. Conversely, if seasonal demand picks up at the end of the third quarter, prices may stabilize in the 7,400-7,600 yuan per ton range.

Practical Recommendations

For Buyers - Current prices are in the median zone. Consider phased procurement to avoid locking in large volumes at potentially higher prices, while not missing the window by waiting for lower levels. - Monitor chemical fiber plant operating rates closely. If widespread production cuts occur in mid-to-late July, a short-term price rebound is possible, presenting an opportunity to increase purchases. - Negotiate floating price clauses with suppliers to partially transfer raw material cost risk, locking in processing fees rather than absolute prices.

For Export Companies - Use the current low raw material price window to lock in input costs for export orders, enhancing price competitiveness. - Monitor RMB exchange rate fluctuations. If the yuan depreciates, higher import costs for raw materials may support domestic prices; exporters should hedge accordingly. - Build in a 5%-8% price flexibility buffer in third-quarter quotations to accommodate potential raw material price rebounds.