On July 3, 2026, public quotes for polyester DTY (150D/48F, semi-dull low-elastic) showed clear divergence: Rongsheng Petrochemical quoted 9,150 yuan/ton, while Zhejiang Juxing Chemical quoted 9,000 yuan/ton. This 150-yuan spread, beneath the surface of routine daily pricing, reflects the deep structural adjustments underway in the chemical fiber industry.
Three Drivers Behind the Price Easing
First, capacity expansion has been relentless. Since 2025, domestic polyester filament capacity has increased by over 3 million tons, with DTY accounting for roughly 40%. Rongsheng's base in Hangzhou Xiaoshan and Juxing's in Shaoxing Binhai are both core production clusters in Zhejiang. The price gap between these two regions essentially mirrors differences in cost control and inventory pressure among producers.
Second, downstream demand has failed to keep pace. In the first half of 2026, textile and apparel export growth slowed to under 3%, and orders for greige fabrics and finished textiles have become smaller and more frequent. Weaving mills now prefer just-in-time purchasing over stockpiling, keeping DTY social inventories at elevated levels.
Third, raw material costs have weakened. PTA and MEG prices entered a downtrend in Q2 2026. The average PTA price in East China fell from 5,800 yuan/ton in early May to 5,400 yuan/ton by early July, a drop of nearly 7%. This directly squeezed DTY margins and forced mills to lower prices to clear inventories.
Regional Competition Intensifies: The 'Hidden War' Between Hangzhou and Shaoxing
The price difference between Rongsheng and Juxing is not merely a matter of corporate strategy. It reflects structural capacity differences between the two regions. Xiaoshan is dominated by large integrated petrochemical-fiber players with complete supply chains and stronger risk resilience. Shaoxing Binhai, by contrast, hosts more small and medium-sized fiber mills with greater capacity utilization volatility and a stronger tendency to cut prices during downturns.
This regional divergence is reshaping the competitive landscape. For downstream buyers, it means procurement decisions must be more granular—considering not just price but also supplier stability, delivery reliability, and quality consistency. For small and medium fiber mills, pure price competition is losing its edge; cost control and product differentiation are now survival imperatives.
Transmission and Impact Along the Chain
Lower DTY prices benefit downstream weaving mills first. In Shaoxing Keqiao, for example, circular knitting and warp knitting capacity utilization was just 68% in June 2026, 5 percentage points below the previous year. Lower raw material costs can improve margins for weavers, but whether this translates into higher order volumes depends on consumer confidence in the final garment market.
For exporters, cheaper DTY expands the pricing room for fabrics and garments. But there is a risk: if overseas buyers interpret the price drop as a sign of industry oversupply, it could trigger a new round of downward pressure. In the first half of 2026, the average export unit price of Chinese chemical fiber products had already fallen 2.5% year-on-year, a trend likely to continue into Q3.
Practical Recommendations
For Buyers - Monitor regional price spreads and prioritize integrated large mills for supply stability, but stay flexible with smaller mills offering lower prices, provided quality checks are rigorous. - Mills with high inventories may be open to extended payment terms or small batch orders—use this to optimize your cash flow. - Set up a price alert system tracking weekly PTA and MEG trends, and incorporate raw material cost fluctuations into your procurement decision model.
For Exporters - Build in a 3%-5% bargaining buffer in export quotes, and proactively signal price concessions to overseas clients using the DTY price drop to secure new orders. - For price-sensitive markets like Southeast Asia and South Asia, promote mid-grade fabrics using semi-dull low-elastic DTY to replace some Taiwanese and Korean products on cost-performance grounds. - Monitor the linkage between RMB exchange rate movements and raw material prices; include price adjustment clauses in long-term contracts to avoid locking in thin margins.
Conclusion
The July 3, 2026 DTY price easing is the inevitable result of overcapacity, weak demand, and falling raw material costs. For the industry, this is both a painful adjustment and an opportunity for forced upgrade. Short-term price volatility is unavoidable, but companies that build advantages in cost control, product differentiation, and customer service will emerge stronger from the coming shakeout.