The latest market quotes for polyester POY show that the 150D/48F specification has fallen below the 8,200 yuan/ton mark. Rongsheng Petrochemical reported 8,200 yuan/ton in Hangzhou, Zhejiang, while Juxing Chemical quoted 8,050 yuan/ton in Shaoxing, Zhejiang. The 150 yuan spread between the two major producing regions highlights diverging inventory pressures and pricing strategies among enterprises.
Supply-Demand Dynamics Behind the Price Easing
Upstream, PTA and MEG prices have been weakening recently, significantly reducing cost support for POY. Downstream weaving mills operate at around 70% capacity, purchasing raw materials only for immediate needs, with little appetite for stockpiling. This 'buy on rising, avoid on falling' mentality amplifies during a price downturn, slowing factory shipments and building inventories, which in turn forces price cuts.
Rongsheng Petrochemical, one of China's largest polyester producers, sets a benchmark with its 8,200 yuan/ton quote. Juxing Chemical's lower 8,050 yuan/ton offer suggests that small and medium-sized enterprises are actively sacrificing margins to secure limited orders. If such price war persists, it may accelerate industry consolidation.
Transmission Effects on Downstream Weaving Mills
POY is the primary raw material for producing polyester DTY and FDY, so its price fluctuations directly impact greige fabric costs. For the 150D/48F specification, a 100 yuan/ton drop in POY translates to a cost reduction of about 0.02-0.03 yuan per meter of greige fabric. For a medium-sized mill producing one million meters per month, this means monthly raw material costs could decrease by 20,000-30,000 yuan.
However, this cost benefit may not fully translate into profit. End-use garment orders are also facing price pressure, with brands and traders continuously squeezing processing fees. Moreover, falling POY prices could trigger pessimistic market expectations, leading downstream clients to delay purchases and worsening the supply-demand imbalance.
Regional Market Divergence
Zhejiang Province is the core cluster of China's chemical fiber industry. The two quoting locations—Hangzhou and Shaoxing—represent two typical models. Hangzhou, home to large integrated enterprises like Rongsheng, has a more complete industrial chain and relatively firmer quotes. Shaoxing, with a concentration of small and medium-sized chemical fiber plants, is more competitive and price-flexible.
Historically, Shaoxing's POY quotes are usually 100-200 yuan/ton lower than Hangzhou's. The current 150 yuan spread sits at the upper end of the normal range, suggesting higher inventory pressure in Shaoxing or more pronounced local demand weakness. Buyers are advised to monitor the spread trend as a reference for market bottoming.