In early July 2026, Rongsheng Petrochemical (including Shengyuan) reduced prices for several polyester FDY specifications by 100-200 yuan/ton. For instance, 75D/36F was quoted at 8,500 yuan/ton, and 150D/96F at 8,300 yuan/ton. This seemingly routine adjustment reflects a broader supply-demand rebalancing in the polyester chain.
Driving Factors: Dual Pressure from Inventory and Costs
The direct trigger is the recent weakening of upstream PTA prices. PTA, the key raw material for polyester filament, has seen its spot price drop by about 3% since late June, eroding cost support. More critically, Rongsheng's polyester filament inventory climbed to 15-18 days by end-June, above the industry average of 12-14 days. The price cut, though modest, aims to relieve inventory pressure. The reduction focuses on semi-dull FDY, especially deniers above 150D, which are used in home textiles and industrial fabrics—sectors currently in a seasonal lull with order volumes down about 10% month-on-month.
Chain Reaction: From Filament to Staple Fiber
The price cut dampened sentiment across the polyester sector. Polyester staple fiber, though not directly reduced, saw its bullish-bearish score drop to -0.5, reflecting bearish expectations. The logic: filament and staple share raw materials and downstream clients; a lower filament price drags down the entire polyester fiber price anchor. For downstream weaving mills, the cut signals potential further cost reductions and a stronger destocking intent from polyester plants, widening negotiation room. Current loom utilization in Jiangsu and Zhejiang stands at 68%-72%, below last year's 78%, prompting mills to adopt just-in-time purchasing. On the export front, the cut may enhance Chinese polyester FDY competitiveness in Southeast Asia, but risks trade friction as anti-dumping probes in Indonesia and India continue.
Regional Markets and Procurement Window
The price cut originates from Rongsheng's Zhejiang base, directly impacting nearby weaving clusters in Shaoxing and Xiaoshan. Small and medium mills there typically purchase weekly; a short-term restocking wave is likely, but limited by only 2-3 weeks of order visibility. On the futures market, the spot cut pressured the main FDY contract, which fell 1.2% with declining open interest, indicating long capital withdrawal. If other polyester mills follow, futures may drop further.