On July 3, 2026, the polyester staple fiber market showed a rare price divergence: cotton-type products fell below the 7,000 yuan/ton threshold, while water treatment fiber balls held steady at 15,500 yuan/ton, creating a spread of over 8,500 yuan. This split reflects the combined effects of supply-demand imbalances and differentiated demand in the textile chain.
Cotton-Type Staple Fiber: Intensified Low-Price Competition, Regional Overcapacity
On the day, Huahong brand cotton-type polyester staple fiber (1.56dtex*38mm) was quoted at just 6,940 yuan/ton in Wuxi, the lowest in the market. Yida, Xintuo, and Zhonglei brands ranged from 7,150 to 7,320 yuan/ton, with Zhonglei products in Huzhou, Zhejiang, relatively firmer. Geographically, supply hubs in Xuzhou, Suqian, Wuxi (Jiangsu), and Huzhou (Zhejiang) showed a price gap of 380 yuan/ton.
What does this mean? Cotton-type prices have fallen below 7,000 yuan, approaching 2024 lows. Industry data indicates the cost line for melt direct spinning is around 6,800-7,000 yuan/ton, meaning current prices are near or below marginal costs for some producers. For the short-fiber cluster centered in Jiangsu and Zhejiang, overcapacity is squeezing margins, and market consolidation is inevitable.
Water Treatment Fiber: High-Value Niche Holds Independent Trend
In contrast, water treatment fiber balls (30-50mm diameter) remained stable at 15,500 yuan/ton, supplied by Henan Kaijie in Zhengzhou. This price has not fluctuated significantly since the second half of 2025, indicating rigid demand in this niche.
These fiber balls are used primarily in industrial wastewater purification and municipal sewage treatment, with demand directly tied to environmental policy enforcement. The price stability suggests steady procurement from downstream treatment plants and environmental projects, unaffected by the broader textile downturn. For upstream chemical fiber firms, expanding into nonwoven and environmental applications offers a way to avoid the red ocean of cotton-type markets.
Upstream-Downstream Transmission: Textile Mills Face Dual Pressure
Lower polyester staple fiber prices theoretically benefit downstream spinning and weaving mills by reducing raw material costs. However, reality is more complex. The decline reflects weak end-demand for apparel fabrics, with insufficient orders dampening mill purchasing intentions, creating a negative feedback loop.
From a regional perspective, textile enterprises in Huzhou, Zhejiang, and Wuxi, Jiangsu, face both raw material price volatility and shrinking export orders. National Bureau of Statistics data shows textile exports fell about 3% year-on-year in the first half of 2026, while domestic demand recovery remains slow. In this context, lower raw material prices do not directly translate into profits; instead, they may intensify downstream price competition.
Differentiation: A Turning Point from 'Volume' to 'Value'
This price dynamic reveals a key trend: the polyester staple fiber market is shifting from homogeneous low-price competition to differentiated value competition. Cotton-type prices are near cost lines, while high-value varieties like water treatment fiber balls maintain high margins, with a price ratio exceeding 2:1.
For chemical fiber producers, this means capacity structure needs adjustment. Simply expanding cotton-type capacity is unsustainable; transitioning to specialty, functional, and environmental fibers is the path forward. Regional optimization is also crucial—while Jiangsu and Zhejiang are highly competitive, differentiated products in central-western regions like Henan can command price premiums.