DTY Prices Soften: Regional Price Divergence Emerges in Zhejiang Polyester Filament Market

On July 1, 2026, DTY (150D/48F semi-dull low-elastic) prices in Zhejiang widened to a range of 9,000-9,550 CNY/ton, with a spread of 550 CNY/ton. Shaoxing-based Juxing Chemical quoted 9,000 CNY/ton, an annual low, while Tongxiang leader Tongkun Group held firm at 9,550 CNY/ton. This divergence is a direct reflection of regional differences in downstream weaving utilization.

Regional Temperature Differences Behind Price Softening

Breaking down the quotes, Shaoxing's Juxing offered 9,000 CNY/ton, 250-350 CNY/ton below the Hangzhou mainstream of 9,250-9,350 CNY/ton, and a full 550 CNY/ton below Tongkun's 9,550 CNY/ton. Such a spread is unusual in a stable market. Shaoxing, one of China's largest chemical fabric production bases, is dominated by small and medium-sized mills highly sensitive to raw material costs. When end-order demand weakens, Shaoxing weavers cut utilization first, forcing local DTY traders and mills to reduce prices to destock.

In contrast, Tongxiang is anchored by large integrated players like Tongkun and Xinfengming, with high vertical integration and relatively stable downstream demand from warp knitting and home textile sectors. These large mills can maintain firm prices. This 'big mills stable, small mills loose' pattern fundamentally reflects differences in risk resilience along the supply chain.

Chain Transmission: From PTA to Weaving Utilization Pressure

The root driver of DTY price softening is dual pressure from upstream raw materials and downstream demand. Since June, PTA prices have fallen about 200 CNY/ton due to crude oil volatility and new PX capacity, weakening cost support. Meanwhile, Jiangsu-Zhejiang weaving utilization dropped to 68% in late June, down 5 percentage points from May's peak. In Shaoxing and Xiaoshan, circular and water-jet loom utilization has fallen below 60%, with grey fabric inventory days exceeding 30.

For buyers, this means the 'premium' in current DTY quotes is being squeezed out. If end orders remain weak through the traditional Q3 off-season, Shaoxing's low prices may spread to Hangzhou and Tongxiang, dragging the overall transaction center lower. However, large mills' price-holding behavior also shows that increased industry concentration gives top players stronger pricing power, preventing a cliff-like decline.

Practical Recommendations

For Buyers - Monitor the actual trading conditions behind the 9,000 CNY/ton quote in Shaoxing: it's typically spot cash or short credit. If cash flow allows, lock in small batches to secure low-cost inventory. - Establish a regional price comparison mechanism: current quotes in Hangzhou and Tongxiang remain high. Track quotes weekly across Shaoxing, Xiaoshan, and Tongxiang, and exploit spread volatility for cross-regional sourcing. - Beware of low-price traps: confirm that 9,000 CNY/ton DTY is AA-grade. Some low-priced lots may be off-grade or degraded yarn. Always request a quality inspection report.

For Mills/Producers - Control finished goods inventory: during a utilization downcycle, keep DTY inventory at 7-10 days to avoid capital tie-up. Consider hedging PTA costs via futures or forward pricing. - Optimize product mix: 150D commodity grades face fierce competition and compressed margins. Shift production toward differentiated varieties such as cationic, sea-island, or high-elastic yarns. - Strengthen credit management: downstream weavers face tightening cash flow. Implement dynamic credit limits and payment terms for regular customers, and insist on cash-on-delivery or bank acceptance for new clients.