On July 3, 2026, the polyester DTY market in East China showed subtle signs of softening: Rongsheng Petrochemical quoted 9,150 RMB/ton, while Juxing Chemical Fiber quoted 9,000 RMB/ton, widening the price gap to 150 RMB/ton. This seemingly routine price update actually serves as a barometer of the tug-of-war along the industry chain.
Regional and Cost Logic Behind Price Divergence
Both companies are located in Zhejiang Province but offered different prices, reflecting variations in inventory and strategy within the industrial cluster. Rongsheng, as an integrated PTA-polyester leader, often sets the industry benchmark. Juxing, a specialized draw-texturing yarn (DTY) producer, offers prices closer to spot market transactions. The 150 RMB/ton spread indicates strong buyer wait-and-see sentiment, with texturizers cutting prices to secure orders.
From the cost side, upstream PTA prices began to retreat in late June, while MEG prices remained weak. The cost support for polyester DTY is weakening. For buyers, this means room for negotiation is expanding, but they must guard against inventory devaluation risks from a potential cost collapse.
Downstream Weaving: To Hold or to Restock?
Currently, average operating rates at weaving mills in Jiangsu and Zhejiang stand at around 70%, with orders dominated by short-run, small-lot transactions. End-use apparel brands have not yet begun large-scale procurement of autumn/winter fabrics. Against this backdrop, the softening of DTY prices presents a double-edged sword for weavers:
- Waiting could mean missing the window for low-cost restocking.
- Restocking now risks further price declines.
Historically, July-August is the critical period for autumn/winter fabric preparation. If PTA prices weaken further, DTY prices may test the 8,800-8,900 RMB/ton range, which would be a safer replenishment point.
Inventory Gaming in Regional Industrial Clusters
Hangzhou's Xiaoshan district and Shaoxing's Keqiao district are the main production and sales hubs for polyester DTY. Rongsheng's quote in Hangzhou versus Juxing's quote in Shaoxing reflects different inventory pressures. In Shaoxing, where texturizing mills are concentrated, the willingness to sell is stronger. In Hangzhou, integrated producers face relatively lower inventory pressure and can hold prices firmer. This regional divergence creates arbitrage opportunities for cross-regional procurement.