Polyester DTY prices showed subtle shifts in early July. Public data from July 3 revealed that for the same specification—150D/48F semi-dull low-elastic—Rongsheng Petrochemical quoted 9,150 yuan/ton while Zhejiang Juxing Chemical Fiber quoted 9,000 yuan/ton, creating a spread of 150 yuan/ton. This price signal is not accidental; it reflects a new phase in the tug-of-war between upstream and downstream in the chemical fiber supply chain.
Supply-Demand Dynamics Behind Price Divergence
A 150-yuan spread in a highly commoditized product like polyester DTY often indicates divergent judgments on inventory pressure and order expectations among producers. Rongsheng, an integrated refining leader whose quotes typically serve as industry benchmarks, maintains its 9,150 yuan/ton price to support margins. In contrast, Zhejiang Juxing's 9,000 yuan/ton quote responds more directly to difficulties in the weaving sector—small and medium-sized mills in Shaoxing and surrounding areas are operating at only 60-70% capacity, adopting a "buy-as-needed" approach with little appetite for bulk stocking.
This regional disparity is no isolated case. Zhejiang's Xiaoshan and Shaoxing regions, as traditional hubs for polyester filament production and consumption, enjoy short logistics radii and fierce competition, making prices more elastic. Meanwhile, Rongsheng's Hangzhou base, with its rigid pricing mechanism and long-term contract clients, adjusts quotes less frequently. The spread essentially reflects a collision between "big mills protecting profits" and "small mills chasing orders."
Transmission Effects on Weaving and Trading
Polyester DTY is one of the most widely used raw materials in weaving, especially for producing imitation silk, taffeta, and springy fabrics. A softening DTY price is beneficial for grey fabric mills, but only if they can correctly assess its sustainability. If upstream PTA and MEG prices also weaken, DTY's downside could expand. Conversely, if costs remain firm, the current spread may be a temporary adjustment rather than a trend reversal.
Traders should monitor two key indicators: polyester plant inventory days and weaving order days. According to industry open data, by end-June, polyester filament inventory in Jiangsu and Zhejiang averaged over 20 days—moderately high. If inventories continue to accumulate through mid-July, more plants may follow with price cuts.
Industry Trend: From Price War to Structural Divergence
The chemical fiber industry is undergoing a rebalancing after capacity rationalization. Over the past two years, oversupply from concentrated mega-refinery projects forced some small and medium polyester capacity out through price competition. But since 2026, downstream demand recovery has been weaker than expected, especially as foreign trade orders lag due to overseas destocking. In this context, DTY price movements are no longer purely cost-driven but increasingly reflect divergent pricing strategies among firms of different scales.
What does this mean for buyers? Simply put, small mills offer flexible pricing but weaker supply stability, while large mills offer rigid pricing but reliable quality and delivery. Buyers must balance "best price" against "supply chain security."