Polyester DTY prices showed an unusual divergence in early July 2026. According to publicly available industry data, on July 1, quotes for 150D/48F semi-dull low-elastic yarn ranged from 9,000 to 9,550 CNY/ton, a spread of 550 CNY. This price gap, rare in the past six months, reflects the deepening conflict between high capacity utilization and weak demand.
The Logic Behind Price Divergence
Looking at the quote matrix, Zhejiang Juxing Chemical Fiber offered the lowest price at 9,000 CNY/ton, while Tongkun Group held the highest at 9,550 CNY/ton. Rongsheng Petrochemical, Zhejiang Jisi New Materials, and Zhejian Senkai New Materials all quoted 9,250-9,300 CNY/ton, occupying the middle ground. This divergence is no accident—Juxing, as a mid-sized enterprise, chose to trade volume for price under inventory pressure; Tongkun, as an industry leader leveraging its integrated chain, prefers to maintain ex-factory prices to protect brand premium and long-term contract customer interests.
Notably, the lowest and highest quotes are for identical product specifications: 150D/48F, melt-spun, AA grade, semi-dull, low-elastic. This means the spread is not driven by quality differences but by strategic choices. For buyers, this creates a rare negotiation window: the same product from different suppliers carries a price difference exceeding 5%.
Supply-Demand Imbalance and Cost Transmission
Current DTY industry operating rates remain above 85%, but downstream weaving utilization has fallen from 75% at the start of the year to around 68%. Inventory days have risen from 15 to 22, with sales-to-production ratios below 80%. This means DTY supply is still running at high levels while demand is contracting.
On the raw material front, PTA and MEG prices have been weakening recently, with the PX-N spread narrowing to below $300/ton, further loosening cost support. The DTY-POY processing spread has compressed from 1,200 CNY/ton to 950 CNY/ton, pushing marginal profits for some small and medium enterprises close to breakeven. In this context, price divergence is actually a precursor to industry consolidation—companies lacking cost advantages are forced to cut prices to preserve cash flow, while leading players use financial strength to squeeze competitors.
Regional Industrial Chain Ripple Effects
Zhejiang Province, the main battleground for these quotes, accounts for over 60% of China's DTY capacity across Shaoxing, Hangzhou, and Jiaxing. Shaoxing's weaving cluster, focused on home textiles and apparel fabrics, saw order volumes drop 12% month-on-month, significantly dampening DTY procurement appetite. Chemical fiber traders in Hangzhou's Xiaoshan district report a 30% decline in inquiries since late June, with actual transaction prices typically 50-100 CNY/ton below list prices.
This regional supply-demand imbalance is cascading upstream. Some small texturing mills have started reducing production, and a few plan to shut down for maintenance in mid-July. If downstream orders do not improve significantly before the traditional August off-season, DTY prices are expected to shift downward to the 8,800-9,200 CNY/ton range in Q3.