PTA Leads Drop by 1.57% as Textile Raw Material Prices Diverge

On July 2, 2026, the textile commodity market displayed a rare two-sided movement: cotton rose 0.30% while PTA plunged 1.57%, leading a broader decline in chemical fibers. The sector's average daily change was -0.15%, but structural divergence runs deeper.

Chemical Fiber Under Pressure, PTA Leads Decline

PTA, a key raw material in the polyester chain, dropped from 5,777.83 to 5,686.84 yuan per tonne, a 1.57% fall that far exceeded other varieties. Despite a year-on-year increase of 13.03%, the short-term downtrend is evident.

Acrylonitrile also fell, from 10,083.33 to 10,033.33 yuan per tonne, while polyester yarn and staple fiber both dropped 0.42%, indicating weak downstream demand.

This decline reflects volatile international crude oil prices and low operating rates at weaving mills, leading to inventory buildup upstream. For chemical fiber plants, profit margins are squeezed from both sides.

Cotton Stands Alone, but Sustainability Questioned

Cotton prices rose 0.30% to 17,781.83 yuan per tonne, with a year-on-year gain of 17.29%. Cotton yarn 21S and 32S remained stable at 23,400 and 24,725 yuan per tonne, respectively.

Viscose staple fiber and spandex held steady, with spandex posting a 21.09% year-on-year increase, the highest in the sector.

Cotton's resilience stems from tight supply ahead of the new harvest and rigid demand from home textiles and apparel. However, if chemical fiber prices continue to fall, the price gap may drive buyers toward cheaper alternatives.

Nylon and Polyester: Calm Before the Storm?

Nylon DTY, FDY, and POY prices were unchanged, with year-on-year gains between 5.50% and 8.98%. Polyester POY, DTY, and FDY also held flat, with year-on-year increases from 9.55% to 14.06%.

This apparent stability masks the risk of catch-up declines if PTA continues to fall. Nylon's raw material caprolactam is also facing supply pressure, weakening cost support.

For buyers, the current plateau may offer a window to lock in prices, but caution is advised.

Practical Recommendations

For Buyers - Wait until mid-July for chemical fiber purchases, allowing PTA to stabilize. - Increase cotton yarn purchases to lock in relatively moderate year-on-year prices. - Monitor spandex closely, as its high year-on-year gain may trigger a correction.

For Mills - Chemical fiber mills should accelerate destocking to reduce inventory losses. - Cotton mills can increase raw cotton purchases to build safety stocks. - Nylon mills should monitor caprolactam prices and adjust operating rates as needed.