Polyester Filament Price Easing: Signals from Rongsheng Petrochemical's Price Cut

In early July 2026, a key price adjustment occurred in the polyester filament yarn sector. Rongsheng Petrochemical (including Shengyuan Petrochemical) cut prices for multiple DTY specifications by 100 to 200 yuan per ton. For instance, 75/36 low-elastic yarn was quoted at 10,050 yuan/ton, 150/48 at 9,150 yuan/ton, and 300/96 heavy-net yarn at 9,250 yuan/ton. As a core supplier in China's polyester filament market, Rongsheng's pricing moves often serve as industry benchmarks.

This price cut is not an isolated event but the result of multiple negative factors. End-user textile and apparel orders failed to recover as expected at the end of Q2. Downstream weaving mills are adopting a hand-to-mouth procurement strategy, showing little willingness to build inventory. Spot market pressure is rising, and the pace of inventory transfer from upstream to midstream has slowed significantly.

Industry Impact

The overall sentiment score for the polyester filament segment has dropped to -1, indicating a generally bearish outlook. This suggests that even without new negative shocks, the existing supply-demand imbalance is sufficient to cap price upside. Rongsheng's adjustment essentially confirms the weakness in market structure rather than triggering a price war.

More notably, the polyester staple fiber futures market showed a correlated reaction. On July 2, 2026, the main contract (2609) on the Zhengzhou Commodity Exchange fell by 136 yuan/ton, with a significant increase in short positions. This indicates that capital market participants also hold a bearish short-term view. The simultaneous weakness in both futures and spot markets reinforces the industry's pessimistic expectations.

For downstream buyers, this phase means greater bargaining power. However, they must also be cautious about further price declines. If end-user demand weakens further during the traditional July-August off-season, Rongsheng and other suppliers may follow with additional cuts.

Practical Recommendations

For Buyers - Consider delaying large orders in the short term and monitor inventory digestion by mid-July before making decisions. - Negotiate floating price agreements with suppliers to partially transfer price risk upstream. - Track Zhengzhou Commodity Exchange's polyester staple fiber futures as a timing reference for spot purchases.

For Foreign Trade Companies - Build price fluctuation buffers into export quotes to avoid order losses from domestic raw material price drops. - Lock in raw material costs for existing orders first, using the current low-price window for hedging. - Communicate the cost reduction to overseas clients to secure new orders, while remaining vigilant about exchange rate risks.