Polyester DTY Price Divergence Intensifies: Regional Competition and Procurement Strategy Shifts Amid Overcapacity

On July 3, 2026, a striking number appeared on the polyester DTY price list: for the same specification (150D/48F, semi-dull AA grade), Rongsheng Petrochemical quoted 9,150 CNY/ton, while Zhejiang Juxing Chemical Fiber quoted only 9,000 CNY/ton. The 150 CNY gap is not an anomaly but a typical signal of divergent pricing strategies among firms of different scales amid overcapacity.

Supply-Demand Logics Behind the Price Gap

The price difference stems from a structural imbalance in supply and demand. According to industry public data, China's total polyester filament capacity exceeded 68 million tons/year in the first half of 2026, with DTY accounting for about 35%. However, downstream weaving demand growth has slowed significantly, with water-jet loom operating rates averaging only 65% in Q2, far below the 78% in the same period last year.

As an integrated leader, Rongsheng benefits from self-supplied upstream PTA and PX, giving it a clear cost advantage. Its 9,150 CNY/ton quote essentially maintains brand premium and channel stability—even amid weak demand, it is reluctant to cut prices. In contrast, Zhejiang Juxing, as a medium-sized regional player, relies on flexible pricing to digest inventory; its 9,000 CNY/ton quote reflects a 'cash flow first' strategy.

This 150 CNY gap is a collision of two business logics: large mills chose 'protecting profit' over 'protecting market share,' while small-to-medium mills chose 'survival' under pressure.

Regional Industrial Belt Transmission

The quotes are concentrated in Hangzhou and Shaoxing, Zhejiang—core polyester DTY production areas. Hangzhou's Xiaoshan and Shaoxing's Keqiao together host about 40% of the nation's polyester capacity, but firms face very different market environments.

Hangzhou's production base is dominated by large petrochemical-polyester complexes like Rongsheng and Hengyi, which have strong pricing power and typically base prices on futures trends and inventory cycles. Shaoxing's base, however, consists mostly of small-to-medium texturing mills that purchase POY for further processing, leaving them with thin margins. When POY prices fell to 7,800 CNY/ton in late June, Shaoxing mills' cost pressure eased, providing room for price cuts.

This regional divergence is propagating downstream. Prices of conventional fabrics like taffeta and pongee at Keqiao Textile City have already softened by 0.02-0.05 CNY/meter, confirming that raw material price pressure is squeezing weaving margins.

Price Expectation Watershed

Looking at the longer cycle, this 150 CNY gap may be just a prelude to larger volatility. On one hand, international crude oil is oscillating around $70/barrel, and PTA processing fees have been compressed below 300 CNY/ton, weakening cost support. On the other hand, about 2 million tons/year of new polyester filament capacity is planned for commissioning in the second half of 2026, with over half focused on DTY varieties.

This means supply-demand contradictions will intensify further. If large mills insist on price support, they may face inventory buildup; if small mills continue to cut prices, industry consolidation may be triggered. For buyers, this 150 CNY gap is both an opportunity and a risk—low prices may come with quality fluctuations or unstable supply.

Practical Recommendations

For Buyers - Prioritize long-term contracts with large integrated firms. Although unit prices are higher, supply stability and quality consistency are better guaranteed, especially for export orders with strict requirements on color fastness and strength. - For quotes from small mills in Shaoxing, adopt a 'tiered procurement' mechanism after small trial orders: increase low-price procurement when the price gap exceeds 100 CNY/ton, but set a 15-20 day quality observation period. - Monitor the POY-DTY spread: when it falls below 1,200 CNY/ton, texturing mills' profits are thin, and buying their DTY may risk downgraded products; request third-party test reports.

For Foreign Trade Companies - When quoting overseas clients, adopt a 'floating price' clause based on the industry average price (e.g., weekly average from platforms like Shengyi or Longzhong) in the week before signing, to avoid losses from domestic price volatility. - For Southeast Asian markets (e.g., Vietnam, Bangladesh), proactively explain the current domestic price structure to guide clients to accept the premium of 'big brand goods,' while using small mills' low-price goods as bargaining chips. - Monitor RMB exchange rate fluctuations and export tax rebate policy adjustments: if the RMB depreciates by more than 1%, consider increasing low-price inventory purchases moderately, but keep them within 1.2 times the export order volume to avoid capital tie-up.