On July 3, 2026, the polyester POY market showed clear signs of price softening. According to publicly available industry data, Rongsheng Petrochemical quoted its 150D/48F semi-dull grade at 8,200 RMB per ton, while Zhejiang Juxing Chemical Fiber offered the same specification at 8,050 RMB per ton, down 100 to 200 RMB per ton from the previous day. Although the magnitude of this fluctuation is modest, its occurrence during the traditional off-season, combined with high upstream raw material costs, gives it a significance far beyond the numbers themselves.
Background
This price adjustment was primarily concentrated in two key production hubs in Zhejiang Province: Hangzhou and Shaoxing. Rongsheng Petrochemical is located in Xiaoshan, Hangzhou, while Juxing Chemical Fiber is based in Keqiao, Shaoxing—both are core polyester filament yarn production areas, together accounting for over 30% of national capacity. Notably, this price reduction was not a synchronized industry-wide move but rather differentiated adjustments made by individual mills based on their own inventory and order conditions, indicating a divergence in market sentiment.
In terms of product specifications, the 150D/48F semi-dull POY is one of the most widely used base models in the weaving sector, primarily used to produce imitation silk, polyester taffeta, and springy poplin. Price changes in this specification tend to quickly transmit downstream to drawn textured yarn (DTY) and gray fabric markets. The current price reduction suggests that the raw material side is opening up room for concessions downstream, but it also implies insufficient willingness from end-users to absorb high-priced raw materials.
Industry Impact
The impact of polyester POY price softening on the industrial chain is asymmetric. For upstream PTA and MEG, lower POY prices mean compressed margins for the polyester segment, potentially forcing polyester plants to reduce operating rates and thereby decreasing their procurement of raw materials. For midstream chip-spinning enterprises, the POY price drop directly compresses their processing margins. For companies that purchase PTA and MEG externally, costs have not come down while product prices have, significantly increasing operational pressure.
For downstream weaving mills, a short-term POY price reduction can lower raw material procurement costs, but this is typically interpreted as a sign of market weakness. Weavers are more concerned about whether the price decline can be sustained and whether it signals broader overcapacity. Historical experience suggests that a POY price softening in early July often indicates a more intense price competition for the textile industry in the third quarter, especially for conventional fabric varieties primarily sold to export markets.
Furthermore, this price reduction occurs at the beginning of the second half of 2026, coinciding with the pre-stocking period ahead of the traditional 'Golden September and Silver October' peak season. If mills choose to cut prices at this point to offload inventory, it may reflect a pessimistic assessment of future demand, aiming to secure orders early through price advantages. If more companies follow this strategy, it could trigger a wave of price cuts, further compressing the profit center of the entire chain.