On July 3, 2026, the domestic polyester DTY market showed notable price divergence. Rongsheng Petrochemical quoted 9150 CNY/ton, while Zhejiang Juxing Chemical Fiber offered 9000 CNY/ton, a spread of 150 CNY/ton. This price dynamic is not an isolated event but a signal of overcapacity and weak end-demand in the chemical fiber sector. As an intermediate product in the textile chain, DTY price fluctuations often foreshadow adjustments in upstream raw material costs and downstream order momentum.
Supply-Demand Logic Behind Price Easing
From the supply side, DTY capacity has expanded continuously in recent years. Leading players like Rongsheng and Hengli have integrated PTA-polyester-polyester filament operations to lower production costs and increase market supply. Industry data shows that new polyester filament capacity exceeded 2 million tons in the first half of 2026, with DTY accounting for about 30%. Concentrated capacity release has intensified competition, forcing companies to cut prices to secure orders.
Demand shows structural weakness. Weaving mill operating rates fell to around 65% in the traditional June off-season, 5 percentage points lower year-on-year. Garment export orders were slow due to overseas destocking, while domestic consumption was dampened by wavering consumer confidence, leading brands to adopt cautious procurement. This supply-demand mismatch puts pressure on DTY prices, especially for mainstream specifications like 150D/48F.
Regional Industrial Cluster Effects
Shaoxing and Hangzhou in Zhejiang are core DTY production and trading hubs. Rongsheng is based in Hangzhou, while Juxing is in Shaoxing. The price gap reflects differences in regional inventory levels and customer structures. Shaoxing, home to the China Textile City, has many small and medium weaving mills with higher price sensitivity, prompting Juxing to offer lower prices to attract orders. Hangzhou-based companies tend to serve larger clients, maintaining firmer prices.
This regional divergence offers greater bargaining power for buyers. For weaving mills in clusters like Shengze and Nantong, current DTY procurement costs are about 200 CNY/ton lower than in Q1, potentially easing margin pressure on fabric processing. However, sustained price declines could trigger upstream production cuts or maintenance, leading to supply tightness later.
Chain Reactions Across the Industry
DTY price easing first benefits texturing mills, which see lower input costs improving margins. But the texturing sector also faces overcapacity, and small mills may be forced out, accelerating industry consolidation.
For weaving mills, lower DTY prices are a positive signal. The cost of fabrics like imitation silk and taffeta, which use 150D DTY, decreases, helping maintain competitiveness in order taking. However, end customers may demand price cuts from fabric suppliers, compressing potential margin gains.
Practical Recommendations
For Buyers - Seize the current price window to moderately increase inventory. Anticipating a September peak season, current low prices offer cost advantages. - Monitor regional price spreads, prioritizing price troughs like Shaoxing, but evaluate logistics and delivery times. - Negotiate short-term floating price contracts to lock in some orders and hedge against price rebound risks.
For Weaving Mills - Leverage lower raw material costs to proactively engage brands and export clients, securing early peak season orders. - Optimize product mix by increasing use of differentiated DTY (e.g., cationic, colored yarns) to reduce dependence on standard grades. - Track upstream PTA and MEG price trends; if raw materials continue to decline, further delay procurement.
Outlook
Polyester DTY prices will remain under pressure in the short term, but downside is limited. PTA prices, supported by crude oil, are range-bound, providing cost support. The September-October autumn/winter fabric season could boost demand. Industry surveys show weaving mills hold low raw material inventories; once orders improve, restocking will quickly drive prices up.
Long term, the DTY sector is entering a capacity consolidation phase. Small players face shrinking margins, while integrated leaders strengthen cost advantages. Instead of passively waiting for price stabilization, textile chain participants should proactively adjust procurement and sales strategies to navigate volatility.